A Kid’s Guide To Making Money

Apr 28, 2023 Family & Finances

Raising money-smart kids begins with teaching them how money is earned. Start small by teaching them the different ways they could be paid.

A young girl sitting on a couch, watching a cartoon on a laptop.

April is Youth Financial Literacy Month and to celebrate we’re sharing resources and activities you can use to help guide the children in your life – no matter their learning style. Below you’ll find a video to watch, article to read, questions to discuss, and links to a related comic and activity sheet.

How Do You Earn Money?

People earn an income when they’re hired by an employer to work at a job. Income is earned as a wage, salary, or sales commission.

Let’s look at an example of each:

Andrew works as a lifeguard at the water park. He earns a wage, which is a set amount of money per hour of work. Andrew’s wage is $10 per hour.

Ellie works as a scientist and earns a salary. A salary is a set amount of money per year. Ellie’s salary is $50,000 per year. If she adds up all her paychecks this year, the total will equal $50,000.

Toby works as a real estate agent earning a sales commission. A sales commission is an amount of money based on part of a sale amount. Tony is helping a family sell their house and in return, they agree to pay him 5% of the house’s sale price. Tony sells the house for $200,000. The family pays him $10,000, which is 5% of the $200,000 sale.

Questions To Discuss:

  1. List three different ways an employer can pay you for working at a job.
  2. What’s the difference between a wage and a salary?
  3. A ________________ is income based on part of a sale amount.
  4. What would Andrew have to do to earn more money at his job? What would Toby have to do?
  5. Bonus Question: A wage, salary, and sales commission are all ways to earn income at a job. What’s another way to earn income?

Continue The Conversation

Activity Sheet

Comic Strip

Two young girls playing on a playground.
Life Guidance for:

Raising Money-Smart Kids

Talking to kids about money is not only acceptable but also encouraged. Use our tips to help your child understand and practice age-appropriate money management skills.

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