How Do I Teach My Child About Entrepreneurship?

by Julie Diamond, OCT

Teaching children about entrepreneurship can set the foundation for lifelong skills like creativity, problem-solving, and financial literacy. 

It's not just about creating future business owners, but about fostering a mindset that can help them succeed in various aspects of life. 

In this blog, here is a comprehensive guide on how to introduce your child to the world of entrepreneurship in an age-appropriate way.

1. Start with the Basics: What is Entrepreneurship?

Explain Entrepreneurship in Simple Terms

Begin by explaining that entrepreneurship means starting something new, like a small business or project, and making it successful. Use examples they can relate to, such as running a lemonade stand, organizing a garage sale, or even selling their handmade crafts.

Highlight the Traits of an Entrepreneur

Talk about the traits that make a good entrepreneur, such as creativity, determination, and the ability to solve problems. Share stories of young entrepreneurs or kid-friendly versions of famous entrepreneurs' stories to make it more relatable and inspiring.

Check out these kid entrepreneurs as listed in this blog post for Shopify. 

2. Encourage Creativity and Innovation

Promote Creative Activities

Encourage your child to engage in activities that spark their creativity. This can include drawing, building blocks, writing stories, or inventing new games. Ask them open-ended questions like, "What new toy would you create?" or "How would you improve your favorite game?"

Create a Safe Space for Experimentation

Let your child know that trying new things is important and that failure is a part of learning. When they come up with an idea, support them in exploring it further, even if it seems unusual. This helps them learn to take risks and think outside the box.

3. Teach Financial Literacy

Introduce Simple Financial Concepts

Start with the basics of money management, such as saving, spending, and budgeting. Use their allowance or money from chores as a teaching tool. For example, if they receive $10, discuss how they might divide it between savings, spending, and perhaps donating.

Set Up a Small Business Venture

Help your child start a small business, like a lemonade stand or a bake sale. 

When I was a child, I had a weekly Kool-Aid stand, and a seasonal garage sale. I even created unique poppies to raise money for the local legion on Remembrance Day. 

Guide them through planning, pricing their products, and managing their earnings. This hands-on experience will teach them about costs, profits, and the value of money.

4. Encourage Problem-Solving Skills

Identify Everyday Problems and Solutions

Encourage your child to look for problems around them that they could solve. This could be a messy playroom, a slow computer, or a way to help neighbors with their groceries. Discuss how they might solve these problems creatively.

Support Their Initiatives

When your child comes up with a solution to a problem, support their efforts to implement it. Help them gather the necessary materials or organize their plan. This support will boost their confidence and encourage further innovation.

5. Develop Communication and Sales Skills

Practice Effective Communication

Help your child develop good communication skills by practicing how to express their ideas clearly and confidently. Role-playing can be very effective here. Pretend to be a customer while they pitch their product or service to you.

Organize Simple Sales Activities

Activities like lemonade stands, craft fairs, or even a neighbourhood car wash can help your child practice sales skills. Teach them how to greet customers, explain their products, and handle money. These educational activities will build their confidence and interpersonal skills.

6. Foster a Growth Mindset

Emphasize Learning from Mistakes

Teach your child that mistakes are opportunities to learn. Share stories of famous people who faced failures but kept going. Check out this list of 50 Famous People Who Failed for examples. 

Encourage your child to keep trying and to see setbacks as part of the journey toward success.

Celebrate Effort and Progress

Instead of focusing only on the result, celebrate your child's efforts and improvements. I cannot stress this enough as an educator and entrepreneur!

Whether they successfully sell out their lemonade or learn a new way to attract customers, recognizing their hard work will help them develop a growth mindset.

7. Provide Real-World Exposure

Visit Local Businesses

Take your child to visit local businesses and introduce them to the owners. Let them ask questions about how the business started, the challenges faced, and what the owners enjoy about running their business. This real-world exposure can be very inspiring.

Attend Kid-Friendly Business Events

Look for local fairs, markets, or entrepreneurial events that welcome young participants. These events often have booths where kids can sell their products or learn from others. Participating in or attending these events can provide valuable insights and motivation.

8. Use Educational Tools and Resources

Explore Books and Games

There are many books and games designed to teach children about entrepreneurship in a fun way. 

Books like "Lemonade War" by Jacqueline Davies or "Kidpreneurs" by Adam and Matthew Toren can provide great lessons. 

Games like "Monopoly" or "The Game of Life" can introduce financial concepts and strategic thinking.

Utilize Online Resources

Websites like Khan Academy and YouTube offer tutorials and courses on various aspects of entrepreneurship. Look for kid-friendly content that can introduce your child to business concepts in an engaging way.

9. Involve Them in Family Projects

Discuss Family Business Matters

If you run a business or work on projects at home, involve your child in some of the discussions. Explain why you make certain decisions and what outcomes you expect. This helps them understand real-world applications of business concepts.

Assign Age-Appropriate Responsibilities

Give your child small tasks related to family projects or your business. For example, they could help with budgeting for a family event, creating promotional posters, or managing simple aspects of a family yard sale. These responsibilities teach them practical skills and the importance of their contributions.

10. Encourage Networking and Mentorship

Connect with Other Young Entrepreneurs

Help your child connect with other kids who are interested in entrepreneurship. This could be through school clubs, online groups, or community programs. Sharing ideas and experiences with peers can be very motivating. 

Check out an inspiring kid boss that Diamond Teachers Group follows on Instagram, Christiana, aka CuteButtonGirl. 

Seek Out Mentors

Look for mentors who can guide your child in their entrepreneurial journey. This could be a family friend who owns a business, a teacher, or a local entrepreneur willing to share their knowledge. A mentor can provide valuable advice, support, and inspiration.

Teaching your child about entrepreneurship is about more than just business; it's about fostering a mindset that embraces creativity, problem-solving, and resilience. By starting with simple concepts and gradually introducing more complex ideas, you can help your child develop the skills and confidence they need to succeed in any endeavor. 

Whether they grow up to start their own business or simply use these skills in their personal and professional lives, the lessons of entrepreneurship will serve them well.