With more parents working from home than ever before due to the coronavirus and people’s commitment to social distancing, children are getting an up close and personal look at their parents’ work. Here are ways to involve your children in the financial side of running a business.
By Jessica Turner, Founder of The Mom Creative.
Sponsored by Regions Bank, Member FDIC. All thoughts are my own.
With more parents working from home than ever before due to the coronavirus and people’s commitment to social distancing, children are getting an up close and personal look at their parents’ work. As a lifestyle blogger, author and speaker, my children have always been exposed to my business. I also work full-time outside the home, giving my kids the unique opportunity to see both a traditional job and a thriving “side hustle.”
Now, as they have gotten older (nearly 12, 9 and 5), I have been making a more conscientious effort to involve them in my business and teach them about the financial side.
Sometimes I think it can feel overwhelming to talk to our kids about finances, but it doesn’t have to be. It’s critical to teach our kids good financial habits. Here are three ways to involve your children in the financial side of running a business.
1. Involve them in the purchasing: From technology to products, businesses require spending. When I recently set up an office in our home’s bonus room, we had to invest in a Wi-Fi booster and some other pieces of equipment to make the space effective. We talked to the kids about the costs of running a business and that it often includes purchases like technology and office supplies, as well as things they might not consider like electricity, internet, phone service and gas.
I've also talked to my kids about the idea that sometimes you have to “spend money to make money.” As a lifestyle blogger, I will often purchase products to try them out. It would be easy for my kids to think I am just buying something for the pleasure of it, so talking to them about the why behind the purchase has made a big impression on them. I have used language like, “by Mommy buying this, I am able to try it out and see if it will help families like ours. If it does, I am able to write about it and earn money when other people purchase it.”
2. Teach them how work impacts life: Children need to be taught that everything in life comes with a cost. Over the years, I have used language like, “Mommy needs to work during the day so that we are able to have a house and do fun things like go to the movies. When Mommy works, I earn money that affords these things for us.” Teaching children about the financial benefits of work by using examples of things they love and understand makes it graspable. As children get older, you can be more specific, saying things like, “Our business didn’t generate the sales we hoped this month because of the impact of the coronavirus and people being out of work, so we are going to need to tighten our budget a bit.” (Check out the Regions Bank Adventures in Math website for at-home real-world math and money activities for kids in grades K-8.)
3. Hire them: If your children are old enough, consider hiring them to perform tasks that you would have to outsource or perform yourself. In addition to the benefit of earning a paycheck, they will not owe federal taxes on the first $12,000 they make, thanks to the Tax Cuts and Jobs Act (TCJA). Earning money will allow them to pay for personal expenses and learn about money management, including saving and investing.
Working for your business would also likely be one of their first jobs, which will (practically) help their resume and (meaningfully) create positive memories together. Working together promotes bonding and shared experiences. While my children are a bit too young to work for me formally (though they do willingly show up on my blog and social media), I hope that they will be impacted by my business and will grow to have entrepreneurial spirits in the future. And, you can bet I will hire them when the time comes!
Giving your children the gift of having a front seat to your work endeavors is a tremendous gift. They will learn about hard work, passion, and smart decision-making, which are qualities that will benefit them all their lives.
Jessica N. Turner, The Mom Creative, is a popular writer and speaker based in Nashville, Tennessee. Her first book, the Wall Street Journal’s best-selling title, The Fringe Hours: Making Time for You, encourages women to practice self-care and make time for their passions. Her latest book, Stretched Too Thin: How Working Moms Can Lose the Guilt, Work Smarter and Thrive released last year.
A veteran in the blogging industry, Jessica founded her popular lifestyle site The Mom Creative in 2006. Since then she has published thousands of blog posts and worked with the nation's most trusted brands including Southwest Airlines, Maytag, P&G, World Vision, Dyson, Rubbermaid, and Hallmark. Women from across America trust Jessica's advice on shopping, parenting and intentional living.
Jessica has been featured in numerous media outlets, including The Today Show, Hallmark's Home & Family, O Magazine, Pregnancy & Newborn Magazine, Better Homes and Gardens, and Inc.com. She and her husband, Matthew, have three active children.
