A Kid’s Guide To Making Money
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.](https://aplusfcu.org/wp-content/uploads/blog/img/iamt-jr-making-money_apr22_blog.jpg)
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:
- List three different ways an employer can pay you for working at a job.
- What’s the difference between a wage and a salary?
- A ________________ is income based on part of a sale amount.
- What would Andrew have to do to earn more money at his job? What would Toby have to do?
- Bonus Question: A wage, salary, and sales commission are all ways to earn income at a job. What’s another way to earn income?
![Two young girls playing on a playground.](https://aplusfcu.org/wp-content/uploads/global/ctas/life-guidance-cta/life-guidance-global-ctas_raising-money-smart-kids_aug22.jpg)
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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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