Would you charge a child for the lemonade used, or just let them keep all the money?

Depends on the age and how much they made. You want them to break even, or they’ll never do it again…

I would probably let them keep all the money they earned unless if I was trying to teach them the simple mechanics of a business – buying and selling etc in which case I might charge them for the raw product (but probably give them a reward after any ways).

What I wouldn’t do: is act like I am in the Mafia and threaten to break their legs if they do not cough up with the money I leant them for lemonade.

Though it is tempting…

I would let them keep all the money. They don’t understand overhead costs yet.

If they are out of elementary school, then I would probably charge them as by then they should know how business works. However, for little guys I think the better lessons at that point are how to deal with disappointment when they don’t get hundreds of customers, and how to clean up after themselves.

I figure if a kid wants to put forth the effort to sit out the stand, tender money and talk to customers then they’re ready to learn about costs and investment.

I’d let them keep all the money.

Also if my child likes to watch Dragon’s Den, I would offer them to provide the resources (lemonade, a stall, cups etc) for a percent stake in the company which we would negotiate to help teach them more skills and help promote a healthy business attitude. If this was appropriate with their age/mental maturity of course.

I would charge, I don’t believe in babying children.

I have never charged my boys for lemonade supplies. Surprisingly they almost always offer me a share of the profits without being asked. We have had several lemonade stands this summer. The most successful raked in close to $30!

They’re children! Not business tycoons. I mean, how much does a table, chairs, cooler/pitcher and lemonade packets cost nowadays? Most of that stuff we already have in the shed. I dont see why they shouldn’t get to keep the money.

I think for them it’s more about the thrill and excitement than it is about making millions. Maybe enough money to buy some candy or an ice cream.

They should be able to keep all the money they earn. They’re just kids. They have their whole lives to concern themselves with money. It’s times like these I’m glad I never had an allowance. I agree with @Disc2021.

I think you need to make a choice as a parent what will make your child happier. If they are young they will probably be happy with just the money and wouldn’t want to be concerned with all the overhead/costs involved with business and just want the extra money to buy lollipops and sherbet.

However if they are slightly older, they may want to play make-believe and pretend that they are running a shop or whatever. In this case you would probably want to charge them for the lemonade (as long as you explain it in advance and they understand). In this case I would probably reward them for being good and showing a positive interest.

As I said earlier it’s best to keep your child’s interest in heart (see: Dragon’s Den idea) and you need to pay attention to them and customise your response appropriate to your child. For example if they show signs of greed, its probably best if you don’t charge them, but if they seem more mature then charging them may help them understand more about business which may facilitate their learning in the future.

But be sure to reward them afterwards any ways regardless of their rakings (ie bake a cake if they didn’t do well or take them out to spend their money if they did do well) for the effort they put into it which’ll help encourage them.

I’d let them keep the money, then when they are older remind them that you paid for the supplies, then I would charge them. :)

@Tink1113 Would you be cruel enough to charge interest. I think you would need to give the child a contract when they were younger to sign and hopefully they wouldn’t be able to comprehend it when they signed it so you can exploit them :D.

Also they’ll learn another lesson: read the fine print.

@Tink1113 man! I should have been keeping records- lol4rl!

If I was helping them run a lemonade stand, it would probably be to teach them the fundamentals of business.

I’m a mean mom! My ten year old wants to set up a lemonade stand to make money to buy a video game she’s been wanting for some time now. She has some money, so I told her I’d take her to the store to buy lemons and sugar. We talked about how much that would cost and how much she should charge per cup of gourmet fresh-squeezed lemonade. I did tell her that she could also make sugar cookies to sell using the mix we already have. I won’t use it since I like to bake from scratch. I will say that my daughter is very quick with math skills, not the least bit shy, and more than capable of understanding that she will make back more than she spends on the supplies we don’t already have in the house. She also has the advantage of a self-employed father who has explained to her more than once about incorporating the cost of supplies into bids he submits to his clients.

On the other hand, if she came to me and said she wanted to set up a lemonade stand to raise money for some cause other than her video game obsession, I would not have her spend money on the supplies.

@Ame_Evil Haha yeah.
@SuperMouse Should have saved up the reciepts lol

@MissAusten You aren’t mean, just realistic and, given your child’s previous knowledge acquired from Daddy, I think this is totally appropriate for her. Most ten yr. olds aren’t that advanced in their business savvy, but for yours, I think she would totally expect you to take the stance which you did (and she’s lucky you didn’t charge her transportation to and from the store) ha ha.

But, seriously, if you would like to steer her into a more altruistic direction after she has made enough to sate her video obsession, you could tell her about Alex’s Lemonade Stands. It is now a national charity, but it all began with a little Phila. girl (Alex) who was diagnosed with cancer and fought a brave battle to beat it. She started a Lemonade stand to raise money for cancer research and persisted for several years in spite of the more debilitating aspects of her treatments.

A local news station did a small filmed segment about her and it eventually got picked nationally and just kept spreading. It’s a very inspiring story.

http://www.alexslemonade.org/slideshow

I would charge them for the supplies, and charge 25% interest on the loan of said supplies, and charge them a fee for selling on the front yard, and charge them for the ticket they should get for selling without a license, and charge them for selling without a general excise tax license, and charge them for not charging state sales tax on the drinks, and….wait a minute; since children are too young to learn the fundamentals of business, I say let them keep the $8 they made.

If they were doing it to earn money for a cause, I would consider contributing the supplies as part of my donation.

If they were doing it to earn a little cash, I would probably charge them at a discounted family rate.

I’m all for teaching kids responsibility. But come on, charging a kid for helping them do a learning activity? Do you charge them for their crayons too?

@Likeradar It might make sense to charge for the crayons or paint if they were producing their works for profit.

@Buttonstc My daughter’s girl scout troop does an Alex’s Lemonade Stand early in the summer. Great cause!

@MissAusten Hey that’s terrific. When I previously lived in Philly for 20 yrs+, the local station would run a half hour tribute special on Alex’s story at least once a yr. and I would watch it every time and shed a few tears as well as admire the spunk of that little girl who persisted in this even in the midst of her pain. What a tremendous little kid; such a shame her life was cut so short, but what an inspiration to other kids as well as many adults. She was truly a special soul.

Kudos to the scout troop also. I’m sure the kids found her life inspiring.

I would take the child to the store to acquire the supplies and then charge a very reduced rate just so the lesson can be learned.