Lemonade Stand: Learning the value of money

Today the girls set up a lemonade stand at the end of the block, to make some extra dough. It’s certainly a great experience to learn about hard work and business.

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For a few years, our girls have had an allowance. They get five dollars, which is a lot of money! But they have some restrictions on it. Sugar and Spice put one dollar in their “learning” jar, which is for their education and travel, one dollar to a “giving” jar, from which they donate money to a cause of their choice, and then three dollars into a “fun” jar, their discretionary income. In the beginning, we had to give them loonies, to teach them relative value. But now they make change!

Anyway, having their own discretionary income means that we say “no” to just about everything they ask for, and they have to save up if they want toys. I don’t remember the last time I’ve bought them a toy. They even treat us occasionally to icecream or frozen yogurt, which is lovely.

Sometimes the girls want to increase their income, however, especially if they have their eyes set on something. Apparently it’s a play mobile veterinary set right now. So they get entrepreneurial; we totally support this. For a little money, they can do extra chores around the house, like wiping baseboards (with so many pets, we always have baseboards to wipe.) But sometimes, if they want to make more money, they set up a little business.

They’re so experienced, they’ve already had a failed business. Sugar came up with an idea of making hair ties. They bought yarn (out of their own money.. I don’t do capital investment…) but after selling a few on credit, realized their friends were never paying them. They lost their investment.

A lesson well learned. “Never sell anything to someone before you get the money first,” Spice will tell anyone who needs business advice. “Especially your friends.”

The tried and true business model is the lemonade stand. First, they save enough for ingredients. Frozen lemonade mix, then sugar, flour, butter and chocolate chips for cookies. They have bought premade cookie dough in the past, but they realized the higher costs were cutting into their profits. So now they make the cookies from scratch. Luckily they’ve found out that Daddy is a cheap employee… For two cookies, he’ll help them bake. Sucker.

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They figure out their advertising and distribution. Today, Spice was thinking about selling the cookies door to door. After carefully consideration, she decided that “we might sell more cookies to one family, but some people will also say no. I hate that. And we’d have to lug a tray from house to house. So I think we should just sit on the corner and they will come to us.”

The advertising is a big poster that they make, with prices clearly marked. Then, they chose their location wisely, which is beside the synagogue parking lot at the end of our street. It has good drive by visibility, and good parking. “People just stop because we are cute and we have cookies,” pronounces Spice, without a lick of sarcasm.

So, today was family day, with the girls choosing the activity. And guess what?

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Jason helped make cookies, I helped with the sign, and we all sat out in the sun. In an hour, they made $42. There were a few tips in there, and some people even just drove up and handed them money. I kid you not.

Playmobile vet set, here they come!

“We didn’t actually make $42 an hour, mommy,” my daughter Spice reminded me after I read her this post. You forgot to count our baking time.”

Such a smart cookie.

2 Comments (+add yours?)

  1. emily
    Jun 27, 2014 @ 14:28:27

    Wow, she is very smart! Your girls sound hilarious. Love the presentation they did too. Looks amazing!

    Reply

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