How to make money as a kid

How to make money as a kid with proven ideas from easy to more technical.

If you’re anything like my 11 year old daughter you’re probably asking for ways to make money so that you can buy legos, games, or apparel. While parents don’t mind providing for your necessities we want you to learn how to make money while you’re young. This is the time to explore, develop skills, and use your passions to make a little spending money.

This list is something my daughter and I have been working on for the last few years.  It started when she participated in a community activity to show and encourage kids to participate in entrepreneurship.  This was a fun activity we were all able to do as a family with the ability to generate a little money.

Parent cue —> How Money Smart Are You?

The list below was put together in order of ease-of-implementation.  Remember the goal is to make money in a safe and easy way. You should not expect to spend lots of money to buy your materials.  The idea is to use your current items or talents/know-how to make money. 

Parents this should require minimal supervision on your part. 

Sell your used stuff

The first is to gather your old, unused toys.  Your closets are probably full to toys you no longer play with.   Have your parent list them on trading up sites.  This is a quick and easy way to get your room organized and make some money.  

Ask your parents to create an eBay account and the same can be done here.  Do the same for the gaming systems you no longer and your gently used clothing.   Also, remember to take key quality pictures before uploading your products. 

House / Pet sit

Offer to pickup your neighbors mail, water their plant, or keep an eye on their house while they are out of town.  Do that enough times and you will be the go-to house sitter expert.  

Sell lemonade

You don’t even need a stand to sell the lemonade.  The neighborhood kids will stand on their yard and shout, “lemonade”!  Sell the 8oz cup for $1 and offer additional goodies to go with the lemonade.  

Parent Cue –> you might want to make sure the product tastes yummy.

Maintain Yards

Maintaining yards involve cleaning flower beds, removing trash, and of course mowing.  Don’t have a mower?  You can plan to borrow the home-owners equipment and do the gig.  

A personal favorite of mine is to keep an eye out for houses listed for sale.  You can then text the listing agent and offer to mow or keep the yard tidy.  This works best where the house is empty.  

Other ideas for kids to make money

The list below will require some technical know-how and  manual or power tools. 

Parent cue –> please plan to assist and supervise your kids while they do these activities.

Create GIFS  

There are free websites that will allow you to upload a picture and create a gif.  Plan to advertise on Facebook and ask for a picture to convert.  You then upload the picture to the website and download the gif.  The gif will then be sold.  

Make wooden signs

You can create custom wooden signs.  The easiest method to do this is to buy wooden pickets and paint them a solid color.  You can join the 3 pickets by using wooden glue, a small wooden piece for the back and some wood screws or nails.

Then select the stencils to create custom and one of a kind signs.   You can buy stencils at your local craft store.  Go to your favorite social media site and advertise the signs.  

Bake goodies

Have a knack for baking?  Consider selling your cakes for birthday parties.  Nothings says unique like a cake baked by a loved one.  Have your parents participate in this activity.

Offer customized goodies

An idea is to offer to customize your friends bags or student’s mask coverings.  A cricut is not a must-have to do this.  You can purchase iron-on material and use your creative skills to draw on the material and then use scissors to cut your masterpiece. 

After cutting you can have your parent help to iron the design on the item.  

That’s it! Pretty easy ways to make some money if you’re a kid. Notice some require little effort while others will need a little more time. Keep in mind that all these ideas will help develop some skills, i.e. communication, sales, profits/loss to name a few.

Parent cue –> You ready to show your kid how to make money? Or do you need help with this topic?

What are ideas would you include in this list?

33 Ideas for Parents To Make Money

8 Reasons Women Make Better Traders than Men

8 Reasons Women Make Better Traders than Men

8 Reasons why women make better traders than men

8 Reasons Women Make Better Traders than Men

Recent studies have shown that female investors gain more consistent returns with consistent performance

If you’re a man reading this chances are the title either disturbed you or you are  rolling on the floor laughing out loud.  Not what you thought about investing did you?

Why is that?

If you’re a female you might have had a hunch that you’re better than your husband but couldn’t prove it.  Until now that is.  Please don’t gloat about this.   

Ok, maybe gloat for a minute or so.

Makes me wonder why we don’t see more women in finance?

In a book authored by Louann Lofton, Warren Buffett Invests Like a Girl and Why You Should Too, she brings forth research indicating that women have enjoyed more consistent returns with consistent performance.

The author looked over Mr. Buffett’s investment strategy and he too demonstrated all behaviors listed.

Consistency is what you want.  

Why should you take her word? 

You’re right you shouldn’t but consider that the research she presents was conducted by several teams and all concluded that women are better investors.  Better investors in the sense that they are consistent. 

Eight reasons women performed better include:

  1. Trade less than men do
    1. Will ignore market conditions and not act on a whim
  2. Less overconfidence
    1. Know what they don’t know and are not afraid to question it
  3. Take less risk
  4. Less optimistic
    1. It pays to be pessimistic and a realists
  5. Value research and consider different view points before investing
  6. Peer pressure does not influence their choices
    1. Men will fall into the peer pressure for fear of rejection
  7. Learn from their mistakes
  8. Less testosterone
    1. Are naturally inclined to take less risk

Women in the studies did not necessarily pick better stocks but they had the fortitude not to trade or sell when the market was tanking. 

The men took the money and ran.  The goal to any investment is to ignore the noise and hang on to the stocks for the long term.  The author suggests that investments need be long term and Warren Buffett is of the same logic too.   

Let’s be honest with ourselves.  It’s ok to say we don’t know.  The study highlighted women’s honesty in admitting they knew what they don’t know.

As an example, the author mentions Mr. Buffett’s tendency to avoid technology companies.  These are outside his comfort zone and he avoids them.  He wants to understand the business before acting on.

My girls

Research like this encourages me as I have two daughters. I make a very conscious effort to teach them the basics to finances. Along with the basics I allow them to pick stocks based on their daily consumption, encourage entrepreneurship, and am developing their minds to see needs and opportunities.

Let me give you a free gift on what I’m teaching my daughters at the moment.

For women I want to encourage you to stay the course. You will outlive your spouses and the sooner you realize that you can win in a man’s trading world the longer your nest egg will last.

For men the words of advice I want to impart on you is to hone in on the traits the author identified and your portfolio will thank you.

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Two Powerful Kaizen Tools

Kaizen Tools Discussed

Kaizen is a well accepted business principal that seeks to improve inefficient practices in industries like manufacturing, logistics, and sales.   Toyota manufacturing is credited for developing the principal. Soon Kaizen would gain popular acceptance in self improvement fields.

The self improvement fields include:

  • Health and Fitness
  • Personal Finances
  • Personal Relationships
  • Kaizen for Productivity and Business

The Kaizen principal is about focusing on the minutiae.  The idea is that one small change makes a huge difference.  It breaks down the job or task into multiple process and then evaluates each process for waste or inefficiencies.

The eliminating of waste speeds up your process. The change is then made and will be monitored before proceeding to the next process.

2 Powerful Kaizen Tools 

Consider these two powerful tools to improve your personal finances:  force multiplier and automation.  Both achieve similar results and your risk-tolerance will depend on the tool you choose.

Read more about the Kaizen tools in this FREE Ebook

Download Free Kaizen Report
Download Free Kaizen Report

Kaizen Tools in Your Personal Finances

Automation

Automation is using software to automate and will include automatic transfers. Set up automatic investment for your retirement accounts.  Enroll in your company sponsored accounts and opt-in for the yearly 1% contribution increases.  Take advantage of your health savings accounts (HSA).  These HSA offers tax advantages throughout your life.

Another example of automation is to create an effective spending plan.  Capture all your expenses at the beginning of your pay period and monitor it as you go.

Plan to tweak your spending plan a few times before you can set it on auto pilot.  I will not be one to tell you can’t have the latte or avocado toast. I don’t believe these goodies will keep your from being wealthy.

Force Multipliers

Force multipliers can be describe as tools that help accomplish your desired goals.  If you prefer to handle cash you can use envelope system to handle your plan.  You can plan to keep cash for gasoline, groceries, fun activities, etc.

We started out with an envelope system and would later go to an automated one.  The idea was to get comfortable handling cash and understanding how our expenses would fluctuate.

Another example of a force multiplier can be a certified financial planner.  The CFP depicts a tool that will amplify your production output, i.e. gains and dividends.  Most CFP will not charge an upfront fee but rather they are paid by commission by the investment firm.

Kaizen Tools in Your Retirement Accounts

Automaton can also provide net worth building gains.  Here you think of diversification through mutual funds, company sponsored accounts, and individual retirement accounts.  Diversification will allow you to weather the ups and downs of the markets.

The method can be considered passive income as you don’t have to talk with your broker or review anything.  I don’t recommend you completely ignore your retirement accounts though.

Force multiplier is a tool that can help you achieve great wealth but comes with greater risk.  Think individual stocks here.  If you put all your earnings in a one individual stock the capital gains are impressive in a bull market.

Now when a bear market roars around the risk is great. Stocks in major oil companies, airlines, and restaurant chains have taken a huge loss and have offset previous gains.

The popularity of commission-free trading has open the door for many novice traders.  I consider myself a novice and invest an amount that will not hurt too much if my portfolio has great losses.

Wrapping it up

Kaizen tools are effective in managing your personal finances and creating wealth.  The tools discussed include automation and force multiplier and are but a couple of longer list that Kaizen offers.

Regardless of the tools used they will require you your buy-in.   You must dedicate time to achieve your desired results.

Go ahead and grab your FREE Kaizen Ebook below.

Kaizen and Personal Areas of Improvement

Kaizen and Personal Areas of Improvement 

The Kaizen Principal is an effective lean methodology. It eliminates waste or redundancy.  This reduction of wastes makes one more efficient and allows you to cut expenses.  Kaizen not only improves areas in manufacturing, logistics, or sales but the principal can be used in areas of personal improvement.

How does this work?

I wrote about 2 Powerful Kaizen Tools that has helped me gain financial independence at a young age.   The change happened as I broke the larger goal of financial independence into manageable tasks.  The tasks followed a sequential order giving me structure and clarity.

My financial independence tasks included:

  • Proper insurances (enough coverage for mortgage, income, and college)
  • Emergency fund (6 month savings )
  • Eliminating debt (mortgage )
  • Growing our income (side-hustles, career advancements)
  • Investing (401K, 403B, IRA etc)

I do want to point out the order or flow matters when you seek financial independence.  It’s very important to follow your plan.  Show yourself some grace when the plan does not go as intended.  Can you say unexpected emergencies?

Personal area I use Kaizen

Your health matters. Alot.  We all have the desire to run every day or hit the gym as often possible.  We plan to watch what we eat.

The reality is we struggle making the time and fitting these desires within our daily obligations.  When you apply Kaizen to your health you take the larger goal and make it into smaller tasks or micro workouts.

Micro-workouts

Focus on smaller workout instead of the usual 30-60min workout.  These micro -workouts include 5min walk around the block or 20 burpees when you take a small break.  I’ve not been able to visit the gym and have been able to carry a workout regime at the house.

The workout takes 10 minutes and consists of cardio like jumping jacks, burpees, and running or walking around the park.  Another workout you may have not considered is gardening.  Consider the carrying, hauling and squatting a gardener does. Plus you soak in the sun.

Your eating habits matter too.  One program I tried was Keto diet and was pleasantly surprised with the results.  The weight came off rather quickly.  I didn’t have to spend hundreds on plans to make keto effective.  I consumed more protein and very little carbs.

The idea is to see your health as a workflow or process: healthy eating habits and workouts. Examine the flow and see what habits you can eliminate and make a new habit.

I provided just one example of many areas of where Kaizen can help you make improvements.  The reality is that you can apply Kaizen to any area you want.

Here’s How

Assign a workflow to any of your areas. If you can easily assign a workflow to any area then you can apply Kaizen to it.  Kaizen works because you can follow the process from beginning to end.  This allows you to see what areas need to change or areas that are causing delays, additional expenses, or grief.

Take Away

  • Develop a workflow for an area you want to improve
  • Break down the area into smaller tasks
  • Take these smaller tasks and review for redundancies
  • Look for ways to automate or apply force multipliers to the task
  • If neither of the above is possible need to evaluate its importance
  • And be prepared to eliminate completely

Loss Aversion Explained and Tips to Overcome It

How this psychological behavior is causing you to lose lots of dollars

Loss Aversion
Loss Aversion

Loss aversion: the pain of losing is twice as strong as the gain

Hey, did you notice an increase in your paystub?  You may want to check it out.   If you did, you are part of the 90 percent of Americans who will have experienced a positive net gain in their take home money.

But have you given much thought to what you will do with that extra money?

Chances are you haven’t given it much thought.  Honestly, I have not done much with mine yet.

Unfortunately, you and I will struggle to save that extra income because it is so much fun to spend rather than save.  Who can relate?

Wait, I have a mental condition?

Yes, we all do!  There is  a psychological behavior that will keep you from saving.  This behavior is known as loss aversion, or the hate of losing.  Loss aversion is a psychological state of mind where the “pain of losing is twice as powerful as the pleasure of gaining”.

We know we need to do something smart with that little extra money and yet we choose to do nothing.   This same behavior is seen  in different areas of one’s life:  health, spiritual well-being, education, and list continues. We know the benefits gained from each of these actions are great, but the pain of losing time, money, relationships, or other resources will keep you from taking action.

Look around your influential circle of friends and you may see the benefits experienced by overcoming loss aversion.   These benefits did not happen overnite.  They probably battled loss aversion at some time yet they did something about it and they took action.

Inaction breeds company and it will have an impact in many areas of your life.

Now that we know that loss aversion keeps us from investing let’s explore the solution

The more steps or actions an activity requires the less likely we are to take a step forward to bettering ourselves.   For example, we need to get in shape and for some reason we believe we need a new workout wardrobe, hire a trainer, and post your accomplishments.  These are but a few things that keep you from taking action.  So many unwritten rules to follow it seems.  But disregard those and get going.

 Let’s look at savings and retirement

The lingo alone will drive one insane!  Annual percentage rate, annual percentage yield, certificates of deposit or CD, bonds, IRA, 401K, etc etc!  That is why your accounts have not grown or you have not started.  According to a report, 50 percent of Americans don’t participate in their 401Ks and reasons stated include: feeling overwhelmed with the many choices, laziness, and struggle with deposits.  I remember feeling all the mentioned emotions as I enrolled in my company 401K.  Trying to be in compliance with company policies, understand vacation policy and now 401K!

The struggle was real and I’m glad I took that plunge. I was afraid to ask questions. Here’s an MBA student who has no idea how to invest, I thought they would say.  I had no idea or direction and no one to turn to.

Don’t let that hold you back! Take action.  My experiences have shown that the first step you take, is the most important one.  Over time you will become more educated and can make wiser choices in your finances.

Turn the challenges into solutions

You might have heard the acronym KISS- Keep It Simple Silly.  Try taking advantage of automatic contributions.   Let the accounts withdraw from your check before you have time to spend it.   If you don’t see it you will not miss it.

Understand as you save more it does not necessarily mean you will spend less.  If you have a budget in place this will keep you focused on your goals.  I’m old school and prefer to look at spreadsheets when using my budget.  There are apps that keep this process simple.  Don’t see saving or investing as a present loss but a future gain or victory.  Keep focused on your goals.

Helpful bits

We are visual creatures.  We like wooing and awwing over beautifully created pictures.  I can spend hours on hours looking through Pinterest and Instargram.  Do the same for  your finances.  Use visuals rather than figures to help you achieve goals.

For example, instead on fixating on a $500,000 retirement, use visuals that that money will help you reach.  Visuals such as vacations, nicer home, or activities you enjoy doing with your family and friends.

Don’t allow loss aversion keep you from achieving your goals.  Learn to focus on the gains and not what you will be losing.  Remember the pain of losing needs to be dealt with.  Keep reminding yourself of the benefits or gains you will be able to enjoy.

How have you been able to overcome loss aversion?  Care to share?

3 Part Communication Style to Help with Money Talks

This simple 3 Step Communication Method will help you have those tough financial discussions. Try this too on tough topics.

I Message - 3 Part Communication Method
Simple Communication Method

This 3 Part Communication Style will make money talks easy

The “I” method is an easy and effective communication style to help with money talks.

It has 3 parts.

Marriage and Money

Marriage and money are hard.  Even more-so when spouses are not able or willing to communicate about them.  As with any relationship,  effective communication is the key for it to work!  It takes practice and application.

Solution

Check out this video where I explain an easy and effective 3 part communication method that will help you handle the most stressful conversations.

The 3 parts are: behavior, event, and emotion.  This method is better known as the “I” Message.

Behavior

This is the behavior that needs to be addressed.  For example, one spouse overspending every month or not paying the bills on time.

Avoid words phrases like “you never” or “you always”.  These phrases will make the situation worse.

Event

The event is an action or consequence caused by the behavior.

Using the example from above, not paying bills on time, an event triggered can be:

  1. credit scored is negatively impacted
  2. will be late charges
  3. foreclosure or repo
  4. deadlines missed

Emotion

The last component of the message is the emotion.  Emotion is used to describe the feelings caused from the event.   Here one can focus one the emotion the event caused.

How did the event make you feel?  Perhaps you were embarrassed, afraid, concerned, uneasy and so on.  These emotions will tend to be negative.

Putting it all together

Now let’s combine the 3 parts.

  1. bills are not paid on time (behavior)
  2. the late payments are causing unnecessary charges and this will affect my credit score (event)
  3. I’m afraid this will cause a bigger balance (emotion).

Consider these notes

  1. Make sure the behavior is tangible (can not be disputed) and you have observed it first hand
  2. Do not use the conversation to address more than one behavior
    1. Don’t piggyback multiple behaviors
  3. Do not address in front of others
  4. Make sure there are no other topics discussed
  5. Make this a one on one discussion
  6. Avoid all distractions
  7. Avoid causing blame or guilt
  8. Avoid using words like “you”
  9. Do not use to manipulate
  10. Do practice or rehearse