Most kids get pocket money and are told to save it. But what if there was a better way? Getting children involved in small business ventures teaches them about money in ways that stick with them for life.  

Money Lessons That Actually Work

When a ten-year-old sells friendship bracelets at school, they’re not just making pocket change. They’re learning to work out costs, set prices, and figure out profit margins. This beats any maths lesson because the numbers matter to them personally. 

Parents can help by sitting down with their child to look at what they spent on materials versus what they earned. A simple notebook works fine, so there’s no need for fancy apps or spreadsheets at first.

Foster carers working with agencies like ISP Fostering have a unique opportunity here. You can talk about how the fostering allowance works as a real example of budgeting. Show how different amounts go towards food, clothes, and activities. When your foster child earns money from their small venture, they can see how their contribution fits into the bigger picture. 

Skills Beyond the Classroom

Running a business teaches kids things they won’t learn elsewhere. They have to talk to customers, deal with complaints, and work out what to do when things go wrong.

Take the classic lemonade stand. What happens when it rains? Smart kids might move indoors, change their product, or learn about seasonal businesses. These problem-solving skills transfer to everything else they do.

Kids also learn that earning money takes effort. This changes how they spend it. A child who has worked for three hours to earn £5 thinks twice before buying something they don’t really want.

Real Mistakes, Real Learning

The beauty of small business ventures is that mistakes don’t cost much, but the lessons are huge. A child who spends all their earnings immediately learns why saving matters. One who prices things too high discovers how competition works.

These aren’t theoretical concepts anymore, they’re lived experiences. Children remember these lessons because they felt the consequences themselves.

Matching Interests with Income

Every child has something they’re good at or passionate about. Some love baking, others enjoy helping people, and many are creative. Small businesses let them turn these interests into income.

A child who loves dogs might start a dog-walking service for neighbours. Someone artistic could sell their drawings or make custom birthday cards. This connection between what they enjoy and what they can earn is powerful.

Building Money Habits for Life

Children who earn their own money develop different attitudes towards spending. They understand effort and value in ways that receiving allowances alone cannot teach.

They learn to reinvest in their business, save for bigger purchases, and make choices about what’s worth buying. These habits continue into adulthood, creating financially aware people who understand the real cost of things.

When children run small businesses, money stops being mysterious. It becomes something they can control and grow through their own actions. Parents and foster carers who support these ventures give children tools that last a lifetime, along with confidence that comes from genuine achievement.

The best part is that children don’t even realise they’re learning. They’re just having fun earning money from something they created themselves.