How much should kids focus on making money?

Recently over on the StevePavlina.com forums, a young man all of thirteen-years-old asked what was the best age to start generating income. The ensuing responses were varied and led to a bit of a debate, which, I know, is shocking to see on an Internet message board! I won’t go into all the arguments, but I encourage you to read the thread as there are some interesting viewpoints.

Some of us applauded his drive and financial foresight, while others thought he was too young to be worrying about making mad money and should focus on being a kid. My advice fell with the former. In fact, I admit I didn’t even consider there was an opposing view. It seemed obvious to me that he should go for it! Now that I’ve had a chance to think about it, I suppose there could be something to the other side.

Regardless of what the young man decides to do, he’s already done very well. He has a savings account with $500 in it he has earned from chores, which already beats the pants off of some people. However, as the young man has already shown an interest in being financially responsible, I had no problem offering him advice on what he can do to make more money. It’s not as if we sought him out to berate him for buying baseball cards (kids still do that, right?) instead of learning how to immunize a bond portfolio. He was seeking out advice! Why not help him?

On the flip side, perhaps some moderation is in order. At his age, he certainly shouldn’t be neglecting school or a social life for the sake of trying to get stinking rich. He’s already doing well and I don’t suspect he’ll have trouble managing his finances in the future, so why not leave things where they are? I certainly wouldn’t want him to develop an unhealthy obsession with money at his age.

That said I still stand by my original position. I do so primarily because he sought out the advice, but for another reason as well. For some of us (The Blessed, I like to call us) managing/making money is a hobby. Mike over at RetireYoungAndWealthy.com recently made an interesting post comparing his online businesses to video games, which I thought was an interesting and legitimate comparison. For those who aren’t seeking out moneymaking opportunities through business, but still have a passion for money, their “video games” might be finding the best bank deals or best credit card reward programs. Is that unhealthy? I don’t think so. As a hobby, it’s certainly more lucrative than many others I can think of. If the young man in question feels the same way, well, I’m certainly not going to be the one to dissuade him.

I don’t have any kids, but I’d be interested in hearing what some of the parents out there (or anyone else for that matter) teach their kids about money. What would be your response if your thirteen-year-old approached you and made a similar request?

8 Responses to “ How much should kids focus on making money? ”

Comments:

prlinkbiz says:
November 22nd, 2006 at 8:12 am

I think about this a lot with my two little guys. The ability to make an manage money can give you freedom- the life you want to live, while lack of it can make you a slave. As long as you know how to make, manage and grow your money- the world is yours- male or female. I just happen to have two sons. While I do not push them, I am always proactive in teaching them about money, and planting seeds in their minds about things like how to afford what they want, how to best use money, ways to make it reach further. I am really just grasping these ideas in my late twenties- and realizing how much they effect every part of life. I would encourage them, and the thirteen year old mentioned above to start learning, start making money, start making mistakes while they are young and can recover from that will give them an amazing foundation. Some people are more interested in money, I think it’s a wiring, a gift or a predisposition of some- but it is important for us all to learn about- no matter what our age! (long winded!)

bluntmoney says:
November 22nd, 2006 at 8:58 am

Well, my 13 year old has come to me with questions about how he can make money. He seems focused on wanting to get a job, which is probably difficult at 13 unless I hire him. But I did reel off a list of things I did at his age (and younger) to make money. Most of them didn’t quite catch his interest, but he is at least aware of some possibilities.

Jennifer Lynn says:
November 22nd, 2006 at 11:34 pm

I’m glad you posted about this, Steve. I completely bypassed this debate in the forum. It definitely is an interesting one. I currently don’t have children. If I did, however, I’d want them to have a greater financial awareness than I did while growing up. As long as they have some basics (such as the importance of saving, or the effects of compounding interest) I don’t see a problem with arming a child with this type of knowledge. It can only serve as a tool in helping them make wiser decisions. Ignorance to me is never a good thing.

I sure feel badly for John and Jane Spendalot’s little darlings though ; )

Matt says:
November 24th, 2006 at 1:18 pm

If I had been taught more about money as a kid I don’t think I would have fallen into debt (or at least not as badly as I did). In all seriousness kids today end up going to school then to college and they only encounter the reality of our world when they have to start paying rent and for car repairs and making sure that there’s food to eat. The gravity of this is often offset by the money coming in… and then the scrambling starts. Most of the people I know learnt about money on their own, by accident often through a trial by fire process.

Is learning by making mistakes the best way to learn? Often it can be but why not teach kids/young adults about the world of money to get them some exposure before the real world attacks them from a financial perspective.

Andrea >> Become a Consultant Blog says:
November 25th, 2006 at 9:42 pm

I think kids should do what makes them happy. If he has a keen interest in financial matters (but not to the point of anxiety), how is this any worse than an interest in comics, video games, text messaging, programming, reading or other activities?

SCapitalist says:
November 27th, 2006 at 8:37 pm

I think kids should be encouraged to think of ways to make money. I have siblings that are considerably younger than myself, and I am always trying to teach them the importance of money. I bought my younger brother a kid ATM last Christmas. He LOVES it, I am surprised how well he maintains the account balance. I try to make money matters fun and enjoyable for him, so it can engage him and hopefully interest him as he grows older.

Mike says:
November 27th, 2006 at 9:45 pm

Love that picture! I think I was like that when I was a kid. Thanks for the link.

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