Learning early how to make and use money is a vital practical skill that will be beneficial to young people throughout their lives.
However, data from Santander in the UK has found that only four in 10 UK children and youth have some form of financial education in school. And with around nine million adults across the UK and Ireland already struggling with debt, according to the Center for Social Justice, it’s clear it’s time for children to become more familiar with financial rules.
Although research has shown that children begin to acquire vital financial skills and habits between the ages of three and seven, some appear to be naturally financially savvy and others are not, notes Rachel Provest, a private equity manager.
Provest, who just wrote the practical financial guide for tweens and teens, Max Your Money, says with investment fund manager Larry Hayes.
But every young man can learn. “It’s about making you the boss of the money, not the other way around,” Provest stresses.
“If they have access to the internet, every child can make some wealth before they leave school – we want every child to find out how they can earn more than a living wage, often a lot more.”
Everyone has a superpower that they can use to maximize their earnings. Even a 13-year-old player can earn more than a living wage as a game coach.
Co-author Hayes adds: “The money-making opportunities are extraordinary. With eight-year-olds earning more than their parents simply by unboxing toys, and child entrepreneurs selling their businesses for millions before they drop out of school, in the digital age, there are more temptations, pitfalls, and opportunities. To make more money than ever before in history.”
Hayes and Provest suggest tweens and teens try some — or all — of these suggestions to make their money and get the most out of it.
1. Find awesome (but well paid) jobs
Take advice from the world’s richest man, Elon Musk, who the authors said researched the most horrific jobs in his area, suspecting they would pay more. He ended up cleaning the boiler room – it wasn’t fun but he got double the hourly wages of the other work options available to him at the time.
2. Use your super powers
Discover the high-income work that matches your personality and skills, which can also be described as your “superpowers”. Provest points out that “everyone has a superpower that can be used to maximize profits.” “Even a 13-year-old can earn more than a living wage as a game coach.”
3. Find online earning opportunities
The list of online earning opportunities for kids is huge, Hayes and Provest assures, citing examples such as translation work if you have a second language, video editing, social media management, music production, video production, singing, coding, and online marketing.
Hayes says: “The list is seemingly endless – one kid made over $1 million by being a bounty hunter for hackers, hacked company websites to help improve security, one of our kids tested the book and is now earning £50 an hour making it. Corporate TikTok videos. It’s only 11.”
4. Get hard skills to increase your earning power
To earn the maximum amount from the job, young people should aim to acquire skills efficiently and cost-effectively. “The number one secret to maximizing your earnings is acquiring hard skills — qualifications that prove you have a particular valuable skill,” explains Provest. “The Internet makes it easy – with cheap and often free online courses where you can acquire the hard skills that will increase your earning power.”
She explains, for example, that a dedicated programmer can access a free online course for a Blockchain developer and qualify after a few months with the ability to earn £700 an hour, or even create their own cryptocurrency.
5. Become an entrepreneur
Being an entrepreneur is a lot like gaming—you need ideas, a willingness to try things, and the nerve to take risks, say Hayes and Profst, who stress that’s how most teens and teens on the planet describe it. “Being a kid is the perfect time to do this, because you don’t have to earn to survive, you have a flexible, quick-learn mind, and you know exactly how the next generation is thinking,” Hayes says.
6. Don’t just rely on pocket money
The authors say the cost-of-living crisis is the perfect time to turn children from spenders into sane ones — so instead of relying on pocket money handouts, they should be encouraged to go out and earn their own money.
“The lessons we teach kids with pocket money are pretty appalling,” Provest says. “Pocket money is either a gift from the money fairy—your parents or caregivers hand it over for nothing—or it is done for chores around the house. But there is no wage negotiation and no minimum wage. Bosses—your parents—are usually the bosses.” Terrible they get really slack one day and then really pissed off the next because you didn’t empty the dishwasher.”
If parents encourage their children to start earning and cash flows — or is flowing — relying on pocket money handouts will soon become a thing of the past. “Your kids will go from being one-track spenders — always asking for more pocket money and more stuff — to income earners who realize how they can start making money for themselves,” Hayes promises.
7. Earn on eBay or other selling sites
The authors stress that even the youngest children can earn money, who cite the example of a nine-year-old girl who negotiated access to her parents’ eBay account instead of pocket money. “The deal is simple – if she finds anything junk around the house, she can sell it and keep half the money,” explains Hayes, who says eBay estimates the average home contains £4,000 worth of junk “stuff”.
8. Don’t ask “Can I stand it?”
Hayes and Provest stresses that one of the big financial rules is that you should never ask “Can I afford it?” , but you should instead ask “How can I bear it?” This way, says Provest, “When you realize what you have to do to pay for it, you can make a rational decision about whether you really want it. It’s all about teaching kids how to be a money lord.”
The best videos are delivered daily
See the stories that interest you directly from your inbox