Kids & Money Lesson 10: Defining Rich What if I was a Lemonade Stand?

What if I was a Lemonade Stand?

Elementary: Last week we talked about running a lemonade stand.

Ask your kids: Did you notice that we needed to discuss the cost of the stuff (money going out) we used before we talked about how much we needed to make (money coming in)?

And if we spent more on the stuff we needed (expenses) than the amount that we made selling it (income), we felt, well, not good, right?

What if we were the Lemonade Stand? What if we looked at our own money like a business? We don’t want expenses (money going out) to be more than income (money coming in).

Explain to your kids that the success of a business and the success of personal finances come down to the same relationship – the margin between income and expenses. It’s not how much money you make in sales, it’s how much you make in profit (sales minus expenses). That’s one key way to measure success!

And that’s what we want to do – measure success with personal finances in a clear manner.

Middle School / Teens: Last week we talked about running a lemonade stand.

Ask your kids: Did you notice that we needed to discuss the expenses before we talked about income?

And if we had to spend more on expenses than we received in income, we felt, well, pretty crummy, right?

That was a business. And while it doesn’t feel good, if the business is unsuccessful, you can walk away and still be you.

What if we were the Lemonade Stand? What if we looked at our own money like a business? We don’t want expenses to be more than income. Because if I’m unsuccessful with that, I can’t walk away from me.

Explain to your kids that the success of a business and the success of personal finances come down to the same relationship – the margin between income and expenses. It’s not how much money you make in sales, it’s how much you make in profit (sales minus expenses). That’s one key way to measure success!

And that’s what we want to do – measure success with personal finances in a clear manner.

Parents: We’re bringing the train around. Can you see it? We want the kids to shift the idea of success from stuff and having a certain amount of money to having margin between expenses and income. That’s where true emotional benefit lies and that is where we feel richest – where we have breathing room in our finances.

Next week, we’ll shift into Standard of Living vs Quality of Life before eventually pulling into the station of redefining rich for the long haul!

Random Fun: Until then, have a dance-off in the kitchen with your kids. Silliest moves win!