How do I teach my children about money?
If you’ve ever wondered how on earth you actually teach kids about money, this is exactly what we’ve been doing in our house lately, and honestly, it’s been such a game changer.
I’m a big believer that the best way to learn is by doing, not just talking. And what better way to learn about money (and even business!) than by starting something yourself?
Our little business idea
My son has been desperate to earn some extra money lately. Instead of giving him random jobs around the house, I thought why not help him create his own money instead?
So, we decided to start a little tomato plant business together.
The idea is simple - to grow tomato plants from seeds and sell them to friends and family once they’re ready.
But what started as a little project, quickly turned into something so much bigger…
Turning it into a real money lesson
I was honestly shocked at how engaged my six year old was with this. We didn’t just plant seeds we ended up planning a business. We talked about start-up costs, profit vs loss, pricing, risk, investments and turnover. These are all real-life money conversations, just in a way that he can understand.
The investor part
We worked out the costs for seeds, compost, and bits we needed and I explained that I would lend him the money and that makes me the investor.
We kept it simple with the fact that he needed money to start, so I provided that, and he would have to pay me back. I then introduced the idea of a little bit extra being paid back as a ‘thank you’ which I then explained is what grown-ups call interest.
Learning profit, pricing and turnover:
We worked everything out together:
how much each plant would cost to grow
how much we could sell them for
what others were charging
My son even decided he wanted to undercut the market to keep things affordable which I loved - of course!
We then broke things down:
total sales = turnover
costs taken away = what’s left
paying back the investor = interest
what he actually gets to keep = the profit
We even talked about what happens if none of the plants grew or if no-one bought them - and that opened the door to such an important conversation about risk, and how it’s very different to just saving money in a piggy bank.
The bit that really stuck
Since starting this the questions have not stopped. He’s asked things like what happens if I pay you back early? Do I still owe the extra thank you money? Which is basically him discovering things like early repayment without even realising it. And that’s why I think things like this work so well. It’s real, hands on and it actually sticks with them.
Why this matters
We’ve gone from planting tomato seeds to having proper conversations about earning money, making decisions, taking risks, growing something of your own and the best part is… this doesn’t feel like a lesson to him - it’s fun!
If you want to try this yourself
Don’t feel like you need to start a full-on business. It could be baking and selling treats, making crafts, or growing plants like we did. The key thing is just getting them involved and talking about money as you go. Because these little conversations add up to big life skills.
Would you try this with your kids?
