Lego Birthday Party

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2 weeks ago my 5th child turned 8.  That’s a significant birthday in our family and calls for a big party.  The point of this post isn’t to show off gorgeous photos. (I’m terrible at photography.)  It’s just to show that a lot of fun can be had with a budget.  The guests talked about this party for days even though it’s not Pinterest worthy.

Brandon couldn’t decide what kind of cake he wanted so I used 2 boxes of cake mix, 1 each of chocolate and white for the cupcakes.  I dropped both kinds of batter into each cup and swirled it a bit with a tongue depressor.  The leftover batter went into a loaf pan.  DSC_0021

I used Dollar Tree cupcake liners and flags.  We decorated them with chocolate melts (from Hobby Lobby) done in these lego molds.  I still have plenty of melts leftover for Christmas baking.
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Regular sized marshmallows cut in half with scissors were the perfect size for lego bumps on top of the loaf pan cake.  Then I microwaved canned red frosting and poured it over the top for a smooth looking frosting.  It didn’t turn out as pretty as the tutorial, but it was really tasty. My Mom had the lego shaped birthday candles in her stash.

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We bought a food coloring pen from Hobby Lobby (with a 40% off coupon) to draw the faces on these lego head marshmallow pops. I used this video for instructions:

Lego Head Marshmallow Popsicles

The pen kept getting junky and didn’t want to write smoothly.   We were going to use the same pens on the cake plates (yellow square plates from dollar tree) to turn them into lego faces.   It just beaded up and wiped off.  Then we noticed that our Sharpies were labeled non-toxic.  We used them on the plates instead of the food coloring.  It looked really good.  I was afraid some of it would come off on the ice cream after it melted into the plate.  It didn’t.

Lego party table

We decorated with a package of yellow balloons and a Dollar Tree Balloon marker–those work really well and don’t smear. Dollar Tree sells packages of single color balloons 15 for $1.  Wal-mart has much better quality balloons 12 for $.97.  The boys made vases out of legos to hide the floral foam we stuck the balloon picks into.  I purchased these balloon picks to save a bundle on helium.  They are reusable and can be cut into scissors to whatever length you need. We now have a lifetime supply.

Printable lego man art

I set up the table with yellow (Dollar Tree) cups decorated with lego faces and filled with crayons, and printable mini-fig pages.  The box in the middle holds a pile of legos waiting for the next game.

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As the kids came in they decorated their page while they waited for the other guests to arrive.  Then we hung them on the wall with painter’s tape.

lego man Art on the wall

To set up our next game, we had bowls full of random lego pieces.  We dumped the crayons out of the yellow cups back into our crayon box and gave each guest a straw.  They had 30 seconds to see how many lego pieces they could move from their bowl to their cup with just their straw and breath.  We played several rounds.

Brandon's 8th birthday 1

Time to get the partiers up and moving.  I passed out a blank sheet of paper and had them number it from 1-13.  Earlier that day, Mom and I hid 13 paper lego men around the house.  (We used this template)

DSC_0035 hidden lego man

Each man had a word or two written on him. The kids had to find the men, write down the word and leave him there for someone else to find.

Finding the lego man

When they were done they unscrambled the words to find the scripture:  “This is the Day that the Lord has made.  I will rejoice and be glad in it.”  It was harder for them than we thought it would be.  Next time we’d number the men so they didn’t have to unscramble.

After that we played “Create That.”  We unzipped the big box of legos in the center of the table and then gave them a couple of minutes to build their interpretation of:  a duck, a car, a plane, a spaceship, a robot, and a boat.  At the end of each time limit we showed each person’s creation, said something encouraging and took a picture of him with it (on my mom’s camera.)

Then it was time for cake and ice cream.

Brandon 8th birthday blowing out candles

And then presents

Brandon Opens presents

Then we handed each guest his own gift, wrapped in a Dollar Tree gift bag (3 for $1) with cardstock circles glued on to make it look like a lego.  DSC_0010

I printed the circles on the computer so I didn’t have to trace a template hundreds of time.  It went pretty quickly.

Each bag had a small 3 in 1 lego kit and a small bag of lego shaped candy.  I just put it in snack sized baggies without a fancy label or anything.  The kids loved it anyway. They spread out and built their lego kit while waiting for the parents to come.

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There were a few times the kids got crazy, trying to sit on the table or running across the back of the furniture, but for the most part it went really smoothly.   Here’s the breakdown of our budget–the printing costs on the invitations included shipping and invites for his brother’s party two weeks later.  I made up a .jpg and had it printed as a photo at Wal-mart.com.  Then we mailed them in photo envelopes.  It was easy and they were very expensive looking.

The most expensive part of the party was the lego set party favors.  We ordered them directly from lego.com.  At the time they had the best price between Target, Amazon, and Ebay.

•Lego sets for party favors x 10 = $56.85 56.85
•Lego Candy $16.56 16.56
•Lego Molds $4.99 4.99
•Postage for invitations $4.50 4.5
•Printing for Invitations 5
•Yellow Cups: $1 1.08
•Yellow Plates: $1 1.08
•Blue Napkins $1 1.08
•Edible Marker $4.99 4.99
•Balloons: 5 5
•Cake Mix $1 1.04
•Chocolate melting Discs $5 5.2
Ice Cream 3
110.37

This is day 28 of our series 31 Days of Kids and Money

Saving Money on Kid Birthday Parties Part 1

Saving Money on Birthday Parties Part 1

Birthdays were a big deal when I was growing up.  My mom was frugal but super creative.  I had a friend party every other year with traditional games like pinata and pop the balloon that’s tied to your friend’s ankle.  One year we turned the whole house into a giant spider web with colored yarn.  Each guest had to wind up their own string and at the end was a small prize.  This game not only decorated the house for the party, but it naturally cleaned itself up as we played :).  Mom always baked the cake and decorated it at home.  Since computers weren’t a household item and the guy who invented Pinterest was probably still eating paste, we got our inspiration from library books.

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The years I didn’t have a friend party, we invited over grandparents for dinner, cake and presents.  Mom did her best to make those times special too.  One year she put a clue inside each balloon.  I had to pop the balloons, read the clues and use them to find my presents.   As fun as these parties were they were a far cry from the super stylized Pinterest parties of today.  I thought they were pretty special anyway.

Brandon 8th birthday blowing out candles

When I became a mom I wanted my kids to have special birthdays too.  Life for me was a little more overwhelming since I’ve been pregnant, nursing or chasing toddlers (or all of the above) for the last 16 years.  We decided that with the size of our family we would limit friend parties to monumental ages:  5 (starting school), 8 (age for baptism), 10 (double digits!), 13 (now you’re a teenager), and 16 (Driving a car).  We would still celebrate the other years, but as a family in stress free ways.

Tomorrow I’m going to show you how I budget for birthdays and some ways we save on games, decorations and party favors.  Today, I want the takeaway to be:  Plan the party for the kids and don’t worry about impressing adults or making it Pinterest perfect.
DSC_0007Keep it low stress and try to let the kids help with stuff even if it won’t be perfect.  I know letting the kids help and keeping it low stress can be opposites.  Take a deep breath and try to go with it.

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It’s all about the memories, building their sense of worth, and showing them that you’re GLAD you get to celebrate with them.  You don’t want to loose the child in all of the preparations and end up making them feel like a burden instead of a blessing.

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Here are my less than perfect cupcakes from our Nerf party this past Saturday.  I was embarrased about how ugly they turned out.  Not one child even blinked.  I jokingly said, “What do you think the cupcakes are supposed to be?”  They didn’t laugh or make fun of my poor decorating job, several matter-of-factly said, “Targets.”  Delicious targets that they devoured in 5 seconds and asked for more.  I’m so glad I went with green—they almost look like something else, but no sweet little boy mind even went there.  The funny thing is, I did them myself.  Brandon asked to help and I didn’t let him.  He couldn’t have made them worse; I should have let him help.

Brandon's 8th birthday heather helps

If things turn out badly, everyone will assume you let the kids help.   So let them help–it’s a great reason for things to be wonky. Sometimes it turns out pretty good and the kids feel ownership about the party.

I love Pinterest and use it heavily for inspiration but I no longer try to recreate a magazine spread all by myself for kids who just want to eat sugar and play games.   That means my kids get a calm and happy mama to host their birthday party.  Who doesn’t want that?

This is Day 26 of our series 31 Days of Kids and Money

 

 

Affordable Cell Phones for Kids

There are strong feelings on both sides of the issue of whether kids should have cell phones or not.  At this point only our oldest has a true cellphone.  She’s had it since her 13th birthday (almost 3 years ago.)

At the time all the kids were going to school together and were in the musical staying after school for a different length of time each day.  We found ourselves often wishing that they were easier to get ahold of.  For her big birthday gift, we bought her the cheapest phone we could find and added her to our monthly bill for $5 a month.  Life was instantly better for us.   The best part was the texting.  All of a sudden the teenage awkwardness between us was gone and we could communicate.  She texted me from her friend’s house just to say, “I love you.”  And I dropped her notes throughout the day just to say, “God made you special and I’m glad you’re in our family.”

Now that she’s older we realized it would be handy for her to have a smartphone where we could share the family calendar and she could access Facebook messages from her choir and youth group.  A friend told us about Swappa, a reliable website for buying used phones.  The phones are guaranteed to work and to not be stolen. She saved up her money from mowing lawns and babysitting and bought the exact same phone I have for 50% less.  We didn’t activate her 4G network with our cellphone company (we use T-mobile because they are the best value for our area) but she can use those features anywhere there’s wifi: home, school, most restaurants and her friends’ houses.

The other kids have been eyeing Heidi’s phone since the day she got it.  It was easy to tell them no when they were little, but they are getting older and going in different directions.  We decided it would be nice to communicate with all the teens when they are working or at school activities and need rides. (Plus it’s a motivating thing to take away if they’re naughty, lol.)

When Heather and Caleb started their businesses and saved up their money to buy an ipod, we looked into cheap ways to get them phone access.  Turns out there’s a magic jack app for iPods.  iPods are about $100 less than iPhones, but can be turned into phones with wifi access with the Magic Jack app.  The app itself is free, and it only costs $15 a YEAR to get them their own phone number with unlimited calling and texting capabilities.  We went that route for those two kiddoes.

We looked at other options such as prepaid cell phones, but since the kids usually aren’t places where there isn’t wifi the Magic Jack was the best option for us.  There’s one more option, Ting, that I haven’t tried yet. My friend Kristen from Frugal Girl says it’s great.  It’s might be a way for you to turn your entire family phone bill into $21 a month.

What do you think about kids and cellphones?  Do you know of another way to save?

This is Day 22 of our series 31 Days of Kids and Money

 

Help! My Child is a Clothing Snob

But first, I want you to know that I’m visiting at Stacy Makes Cents today.  Come along and find out the secrets behind my crazy low grocery budget. After you leave a comment on this post of course :).

A child might be a clothing snob if:

  1. They reject second hand clothing
  2. They determine the quality of an item by it’s name brand
  3. They determine the quality of an item by it’s price
  4. They beg for clothing the family can’t afford
  5. They have a closet full of clothes (that fit) and nothing to wear
  6. They think sales are embarrassing
  7. They think once a style is sold at insert any store here, it’s outdated
  8. They would never shop at insert any store here
  9. They judge another person’s value by what they wear

The thing about clothing snobs is they have low self worth.  They don’t believe they are anyone special apart from their clothing and that’s the main issue to combat.  Making them feel guilty about the naked kids in Africa won’t do it, though that can be a project once self-worth is restored. They might have caught the wrong message of worth from a bully, an advertisement, or a TV show.  However it happened doesn’t matter, the important thing is to make sure they recognize their own value (and also the value of others.)

They are of worth because God made them in His image.  He loved them so much that he gave  them their free will.  Then left his throne to die in their place in hopes that they might use their free will to choose Him.  No piece of clothing can change their worth.

As you are building a proper view of self, there are other things you can do.

  1.  Try giving them their own clothing envelope and let them use it to buy their own clothes.   For this to work, you can NOT bail them out.  If they spend it all, they’ll need to earn the money on their own to meet their clothing needs.
  2. Donate their excess clothing to a good cause.  Such as the dress project or a local ministry.
  3. Sew dresses for little dresses for Africa. Or for babies born sleeping.  Or knit hats and scarves for the homeless and here.

There’s something about volunteering and serving that heals the soul.

This is day 21 of our series 31 Days of Kids and Money

Affording Kids Clothing

My mom sewed my clothes when I growing up.  Most of the time it was good.  There were moments when I wished I looked like everyone else, but it was pretty cool to get to design my own stuff.  AND I learned to sew a bit along the way.

I sewed my own kids’ clothes for years…it was a tradition I liked carrying on.  I did it on the cheap, recutting cast off clothing and using clearance bin fabric.  At some point while homeschooling, having 6 babies and working 3-4 jobs at a time on the side, I ran out of time.  Some of the kids were getting old enough that they had opinions about what they wore.  I might spend hours on an outfit, only to have it rejected during the final fitting. Sewing lost it’s charm for me.

Now we shop more at thrift stores, where the girls can try on stuff.  ThredUP gives us the convenience of thrift store shopping at home. We love that Old Navy clearance has prices to rival thrift stores and online sales around holidays that make their whole stock accessible.  Forever 21 has some of the trends the teens crave (after you sort through the WEIRD they also carry) at bargain prices. Discount shops like Ross, TJ Max, Burlington, and Marshalls fill in the gaps.

I tried shopping at a huge consignment sale once.  I was pregnant and tired and the crowd was overwhelming.  I thought the prices were high.  I could do better on clearance racks and I was so under impressed that I never went back.  That was 8 years ago. I have several friends who still go every season and score great deals.  Every thrifty method isn’t for everybody, and that’s ok.

There are times in my life where sewing exactly what we need still feels easier than running all over town looking for something specific, but if we are looking for general items for a particular season, it’s really fun to bargain shop.

My two girls have different shaped bodies and different personalities and style preferences.  We don’t hand down as many clothes as we used to between them.  Since we get their clothes so inexpensively, we sell what they can’t use anymore at yard sales and use the money to replace the clothing.

When you sell at yard sales and buy at yard sales, you can dress for free.

One of the best ways I like to save on clothing is to host a HUGE garage sale twice a year and invite friends to bring stuff.  Then I can shop from what they bring.  I have some stylish friends who price their stuff cheap.  This August was a huge win that way.  (I scored 2 Vera Bradley purses for $.50 and $1.00 each and they hardly look used!)

We pass clothes down through the boys as much as possible.  I have purchased more for the toddler than usual since 3 boys have worn the clothes over a period of 10 years and they are worn out.  Crumbling elastic, pilly fabric, ripped knees–worn out. I also shop for the oldest–who has no one to hand down to him.

Clothing is the hardest budget for me to stick to.  We do cash in an envelope but I only get $10 a month per person, which is also supposed to cover shoes.  That really doesn’t cut it, so I supplement that budget with garage sale income, and online sales. My ideal budget is $200 per year season for the ones that don’t get passed to, and $50 a season for the others. We’ve never quite had that much, but a girl can dream.  If I finish a month with money left in the envelope, I remove it from my purse and put it in a clothing envelope in the safe. That way we can save up for bigger purchases later in the year.

It’s possible to be thrifty whether you sew it, buy it new, or buy it used.  How do you prefer to save money on your kid’s clothes?

This is day 20 of our series 31 Days of Kids and Money

 

Kids Buying Cars

Kids Buying Cars

My oldest daughter will be 16 in 90 days.  She’s a good driver and I’m excited for her to get her license and help out with the taxiing. I’m also excited for her to save up and buy her own car.

It’s something we’ve talked a lot about lately.  She’s concerned that it will take forever to save that much money.  I reminded her that I’ve been driving a car worth $500 for a couple of years.  If she could scrape $3,000 together, it would be the nicest car at our house :).   Dave Ramsey has a matching fund for his kids.  If they save so much towards a car, he’ll put that much more with it.  We thought by now we’d be in the position to do that for our kids, but we’re not.  They are going to be fine anyway.

Then there’s the insurance.  When I was a teenager, my parents paid my insurance as long as I was driving their car and made A’s or B’s in school.  Darren and I looked into it for Heidi and it’s pretty cheap to add a driver to an existing car since they aren’t the primary driver.  As soon as you add another vehicle to the mix, they become the primary driver and the insurance is quite a bit more expensive.

When we’re shopping for cars we call our insurance agent first and find out what it would cost to insure the vehicle we’re interested in.  It’s good to know all the numbers you’ll be faced with before you buy.  We also think about the sales tax, licensing and annual property tax.

We like to buy our cars used from a 3rd party (instead of a dealer), then run the car by our mechanic for a look over.  We aren’t car people, so it’s good to get someone who knows what they’re looking at to find any glaring problems.  We also look up the private sale car value at KBB.com. If you compare that number to the dealer price, you’ll see why we prefer to buy from an individual. It surprises us how many vehicles listed on Craigslist are priced incorrectly.   With the KBB number you’ll have what you need to know to make a reasonable offer.

We’re getting ready to buy a couple of cars for the family and are involving Heidi in the process, so she’ll be more prepared when it’s her turn.  At first Heidi thought she wanted a truck, but now she’s thinking something smaller and more fuel efficient.  As long as she’s paying cash, we’ll let her make that decision.  I’m excited to see what she chooses.  Until then, every time she gets called for a job that car is going to be in the back of her mind.

This is day 16 in our series 31 Days of Kids and Money

 

No More Mess! A strategy that really works

As usual, this post is about transferring responsibility to the kids.  That doesn’t mean that we get to sit back and do nothing, but once this system is in place it’s much less stressful than normal.

No More Mess

I couldn’t wait to go to college.  For the first time I could set my own rules and try out life on my own while still bringing my laundry home every weekend — independent, but not tooooo independent.

I only took the stuff that I needed to survive and happily moved into the dorm shared with 3 friends from home.  For the first time in my life I kept my room clean.  Spotlessly clean.

Before 2

Was it because I only had a few things?  Partly.  Was it because I finally felt responsible for my own space?  Partly.  Was it because I was determined to show that I was a mature adult?  Partly.

Heather's Room

The REAL reason was the college inspected our rooms and bathrooms every Wednesday, and if we failed in any small part, we had to pay a maid to make it right.   I was broke enough.  I didn’t want to give up extra money each week just to wallow in filth.

Why did the school care that much?  If we were filthy, then mold, rodents and bugs could become a problem.  They were protecting their property and rightly so.  Either we could clean ourselves or hire someone to clean it for us.  The school didn’t care either way as long as the room got clean. As parents we have just as much right to protect our property and our sanity by requiring our kids to keep their rooms clean and keep the food in the kitchen.

The Plan

  1.  Help your kids sort their items Konmari style, keeping only the things that spark joy.  If they still have too much stuff, offer to box half the things to trade when they get bored with what they have.
  2. Give all the items they are keeping a specific home (labels are a nice touch.)
  3. Give a short list of expectations
  4. Inspect weekly (or daily at the start if you are building habits) You might have a learning time period when the kids get a treat for clean spaces
  5. Charge them for a maid if they need one

Do you think it would work at your house?

This has been day 14 of our series 31 Days of Kids and Money

P.S.  I have to be really honest here.  Not all of our kid rooms are clean right now.  The ones that we have Konmaried are doing well and we’re still in the process on the rest.  We proved the system worked at our old house and now we’re working to get back to that happy place.  A lot of it depends on me being consistent with the checking, the rewards and the consequences.  Sometimes I think It would be easier to just clean the room myself, BUT that’s not good for the kids.  How amazing would it be to grow up and be a tidy adult?   I want that for them.

 

Music Lessons: Shifting Responsibility to the Kids

I’ve only heard of a handful of kids who were excited to practice for their music lessons, and I’m not completely sure the stories were true.  When I was a music teacher my philosophy was simple.  If you didn’t practice, come anyway!  Likely you don’t remember what to practice after a week off and I’ll help you get started again.  I figured the one practice session a week with me was better than nothing.

At some point, however, a habit of never practicing really slows progress. I got tired of paying for lessons to hear my kids sound the same week in and week out.  And our music teachers didn’t all share my philosophy.  Often we spent half of the 30 minute lesson listening to a lecture on the importance of practice–and NOBODY wants to pay for that.

Music is important to me.  So important that I didn’t give my kids a choice of studying music, just like I wouldn’t let them opt out of math. We couldn’t afford lessons so when it was time to start, I took on a paper route to make music possible.  When I became too pregnant to deliver papers safely in icy weather, I started selling Mary Kay instead.  Then Darren lost his job, and we immediately suspended the lessons. Our teacher kindly offered to continue  in trade for my teaching his wife to sew.  I throw that out there just to say that there are ways to have music lessons even if your budget is tight. (I once had a voice student who paid in raw milk = awesome!)

Anyhoo, I finally got so tired of fighting the kids to practice that I announced they were paying for their own lessons.  Each instrument cost $60 a month and the 2 oldest study 2 instruments @ $120 a month.  My kids don’t make that kind of money, and if they did I’d rather them put it in a ROTH.

So, I offered to pay them $3 for a GOOD practice session.  I did not allow them to skip a lesson for not practicing and if they didn’t earn enough to pay for the lesson by practicing they had to come up with the money another way.   It worked.

That was over a year ago and now that we’ve been using this method for awhile, I’ve got some tips for you.  Make sure to get enough single bills at the beginning of the month so you can pay the kids as soon as they practice. It reinforces the behavior better if they get the immediate reward.  It feels weird to go to the bank and get that many ones. If it bothers you, you can trade the kids their ones for bigger bills on the way to the lesson, then use the same $1 bills every week.

I use a clipboard system to help the kids pay themselves when they practice.  Original post here. My biggest failure is forgetting to stock it each week :(.  That can make the whole system go bust.  We have our clipboards hung on the second floor outside their rooms and it would be better for me if they were some place I see all the time.  Out of sight, out of mind.  If you decide to try it, adjust the system to work for you.

There will come a time, when your child has to pay out of his own pocket. He will be sad.  You should be sad too.  Say things like, “Bummer, I’m so sorry this happened.” Look genuinely sad.  It will be hard to look sad, because this is the BEST thing that could be happening for the good of your child. Try to manage it anyway.

If they don’t have money, you can say, “I don’t know what you are going to do.”  Do not give him answers.  Do not bail him out. If he offers to work for the money, accept the offer. Make the job difficult enough that practice would have been better.   If they will be short with money going to the lesson, please (secretly) call the teacher ahead and ask for his help in making your child responsible.  You might offer to slip him the money (and possibly an extra tip) if he will make the child work the debt off.  It will only happen once (or twice if your child needs to test the limits a few times to feel secure.)

This is day 13 in our series 31 Days of Kids and Money

 

How to Teach Your Kids to Become Entrepreneurs

My goal for my kids is to learn to work hard, do their best work, and be able to create income even if traditional jobs aren’t plentiful.  Helping them with their own businesses as children is one way we work on those skills.

A loyal reader sent me this suggestion: I absolutely love your kid’s money month, learning about their businesses. I was wondering for those of us less inclined, would you be able to do a blog tailored for the how to a kid would start a business? I loved the little tip about the fictitious name. I wonder how that “self employed” tax thing works. I was thinking about Abby and what she’s good at that she could help earn her some money and the party planning, cake baking came to my mind. While she’s still a teen and it may not be just like a professional baker, I think for what little practice she’s done that she’s knocked it out of the park.

I’m still learning a lot about running businesses, but here’s what I’ve learned so far.  Hopefully this will steer you in the right direction:

Choosing a Business

Have your child answer these questions and see if anything sparks a business idea:

  1.  What do I enjoy doing?
  2. What problem can I solve for someone else?
  3. What do I already have the supplies/equipment to do?
  4. What do other kids my age do to earn money?
  5. What adult jobs appeal to me?

Setting up a Business Plan

Keep it Simple, but include these things:

  1. What service will you provide or what will you sell?
  2. How will you make money?
  3. What will you charge? Make sure your fee covers your expenses plus profits.
  4. What are your expenses? (including supplies, equipment, advertising, transportation….)
  5. How much do you want to earn? (set a time frame) What do you need to reach that goal? (Specify the number of clients, Hours to work, or items sold)
  6. How will I keep records?
  7. How will I expand and grow?
  8. How can I leverage this business? (Earn a percentage of what others sell; Train others to start their own similar business)
  9. Do my prices reflect current market value (for my age?), allow for expansion and growth (to pay someone else and still make a profit.)  You want your prices low enough that you will get customers, but high enough that you won’t have to raise prices for several years. If you are worried you are charging too much when you are getting started, set your prices at market value, then offer a coupon incentive for your first few customers while you gain experience.

Finding Customers

  1. Who is your ideal customer?
  2. Where does your ideal customer hang out?  How can you reach them with your message?
  3. If you are doing something other than babysitting, you probably need a website to direct prospective customers to.  This is a great place to outline your fee structure, showcase your work, give customer reviews, and offer scheduling. There are free websites available but to save a headache in the future spend a few bucks to buy a domain name and have it privately hosted. You can set up hosting for about $6 a month. Then upload wordpress.org for the easiest to build website.  There are great youtube tutorials or you can get someone to do it for you from fiverr. (Most stuff there is only $5.)   I use Hostgator for domain registration and hosting and have been pleased with them.  If you use someone else, find someone who also uses Cpanel.  This simplifies things if you end up needing help from someone on fiverr or similar.
  4. You should also set up a facebook business page. Tutorial here.
  5. I’ve been able to help my kids get clients through facebook. It was a great first stop for us since I wanted them to work for people I knew well.  I just popped out a note that told the business, their availability and rate.  We were booked for the summer within a couple of days.

Business Licenses

  1. Most states have a Cottage Food Law that allows you to sell home baked goods and jams and jellies from your home without a license or health inspection. So if your daughter wants to bake cakes for birthdays, she probably can :). You can check the laws for your state here and here.
  2. Other business licenses–this gets tricky.  If you do a search for “Do I need a business license for_______.” you’ll get answers ranging from “definitely” to “probably not.”  We did not get licenses for any of our kids since none of our businesses require traffic to the house.  When I started my first home business, I got a fictitious name registry since my business name did not have my legal name in it.  That allowed me to get a bank account with my business name so I could cash checks made out to the business.  You can skip all that mess if you put your legal name into your business.  For example my official business name is: Angela Coffman: The Grocery Shrink (no fictitious name registry necessary–in Missouri.)  Get more info on whether you need a business license here.
  3. If you are advertising with flyers door to door or on cars, you probably DO need a permit for that.  You can get that at your county courthouse.

Taxes

  1.  Federal income tax:  Your child MUST file their taxes when they earn $400 or more.  The good news is when your child starts filing federal income tax, they become eligible to invest in a Roth IRA.  Make this happen.  (I’ll talk about it more later this month.)
  2. Self-employment tax:  This is social security and medicare tax.  Normally an employer pays half of this tax for you.  When you are self employed, you play both halves.  You can learn more here.  It’s 15.3% at the time of this post.
  3. State and local taxes–these are in addition to your federal income tax.  BLESS the states that do not have a state income tax: AlaskaFloridaNevadaSouth DakotaTexasWashington, Wyoming, New Hampshire and Tennessee.  (47 states charge corporate income tax, keep that in mind when deciding if and when you should incorporate.) In addition your city may choose to charge a local income tax– 😛 Learn more here.
  4. State and Local sales tax: Your tax rate will vary based on your zip code.  These taxes generally apply to goods (but not services) sold to the end consumer (not sold to a distributor or to a tax exempt entity, such as a church.) This might come into affect if you are selling crafts or baked goods, which is one of the reasons I steered my kiddoes towards service industries. Learn more here.  Some states have also enacted internet sales tax laws.
  5. Tax Deductions: Having a cottage business makes taxes a bit more complicated, but there are whole list of tax deductions that can help reduce your child’s tax burden. Here’s an official list from the IRS.
  6. Whatever you do keep good records. This is great experience for your kids.  For every tax deduction you need proof, a receipt, calendar of appointments…something.  Keep everything together and save it for 3 years just in case you get the dreaded official letter in the mail. (Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction–probably won’t apply to the kiddoes :).)

This is day 8 in our series 31 days of Kids and Money

Meet Aspiring Kidpreneur, Brandon

Kidpreneur Brandon

Brandon turned 8 on the 5th of this month and hopes to launch his business this summer as a personal consultant on Kid Bedroom Organization and Interior Design.

I’m going to be up front about this, Brandon is unusual. He was born organized and likes things to be tidy. He made his own lunch from the first day of kindergarten, wakes himself up for school with his own alarm, and frequently brings me items to get rid of because he doesn’t play with them enough. He chooses his own clothes and slicks down his own hair. He likes to wear belts, tucked in shirts, bow ties and vests. He loves an opportunity to put on a business suit, tuxes are even better. If I need assistance, he’s the first one to volunteer. We sometimes joke he was born an old man. (He considers that a compliment.)

I wouldn’t have talked with my other kids about starting a business at age 7, but he’s interested in it, has skills and an unusual sense of responsibility for his age.

He begged me to let him start working last summer as a recent first grade graduate and I held him back. I wanted to make sure he had the attention span and maturity level necessary to follow through on the job. I’m not sure he’s quite there, but we are going to try a few clients over winter break to get him some experience PLUS some before and after pictures and customer reviews for his website.  I plan to be his personal assistant until I’m sure he is ready to fly on his own.

I’ve been spending time talking to him about the steps he will take when he starts a new job, how he will respond if someone shows an emotional response to cleaning up or letting things go, and the importance of sticking with a job and working hard especially when someone is paying you.   He’s also thinking about simple systems and checklists to leave behind, so the parent and child can work together to keep the child accountable on keeping his room tidy.

He plans to work in 2 hour increments 2-3 days a week and has a list of items he can up-sell such as a virtual room redesign with shopping and work lists and subscription for weekly inspections and treat delivery .  He is also planning ahead to be able to hire people to work for him so he can take on even more clients and launch an online training program so other kids can start satellite businesses in their own areas.

Here’s his interview:

This is day 7 of our series 31 Days of Kids and Money