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As a parent, you’re constantly offering important life lessons and skills to empower your children to become responsible adults. And one of the most powerful tools you can provide is financial know-how. A strong foundation early on can help your children make smart financial decisions not only when they’re young, but also as they reach different life stages. Especially because many adults struggle to manage their own finances, it’s important for everyone, regardless of age, to achieve financial independence. How you discuss money may differ depending on your child’s age, but here are a few essential tips for every age:

Map Out Goals:

Children are constantly surrounded by money, whether they’re just learning to count or receiving their first allowance. But an essential concept for them to understand is the purpose of money, particularly how it’s earned and used. It’s important to educate your children that people must work for their money. Once they understand that it comes in limited amounts, you’ll be able to help them map out their goals for using their money to prioritize their needs and wants, along with philanthropic giving.

Don’t be afraid to share your own experiences with your child. By providing children with relatable examples, they’ll be able to develop a stronger understanding of managing their money to meet specific goals. Whether it’s as simple as creating a grocery list together or discussing how you might be saving for a longer term goal such as tuition for their college education, you’ll be able to show your child the range of objectives you’re meeting. This can also help demonstrate the importance of careful planning to make sure your assets are able to meet your goals.

Save and Budget:

While your children may be too young to start their first jobs, they’re never too young to start saving. Encouraging your child to save can help them see the rewards of delayed gratification. A piggy bank is a simple and tangible way for younger children to store money away. Even if it’s as little as putting in a few coins a day or a couple of dollars a week, over time they’ll be able to feel the weight of their labor. As they get older, consider opening a high yield savings account together to introduce the concept of interest. They can store those birthday checks or allowance earnings and see how that amount can grow over time. To incentivize saving, you may also want to reward their efforts with matching contributions.

As they learn about the ways money can grow with steady saving, children should also understand how to create and stick to a budget. Budgeting will demonstrate how savings can be allocated and used to achieve goals. Helping children save for their objectives can teach them to build a relationship with their spending. You can also use major milestones such as graduations, weddings, and births to discuss examples of financial goals. Motivation to save and budget can foster solid financial habits. Read More

For a lot of parents, sending their kids off to college is a bittersweet experience. It’s a battle between being proud of their son or daughter for taking this next step and thinking back on how fast the time has gone—and how it seems like just yesterday that they were 2 years old.

It wasn’t that long ago that I was stepping onto a college campus for the first time, and I remember how thankful I was for the effort my parents put into preparing me for that experience. But I think a lot of teenagers head to college without any idea about how money works. Ten years from now, they’ll more than likely be loaded up with student loan bills. It’s a scary trend that keeps getting worse.

Don’t let that happen to your college kid. Help them understand these issues before they step into that first class.

Budget, Budget, Budget. If you haven’t been using a budget, it will be difficult to convince your kid to use one. So start by making sure you understand budgeting and have begun to use it as part of your financial plan. Then, just walk them through the process—spending all of their money on paper and on purpose before each month begins. Everything should be broken into categories—food, gas, clothing, etc.

Independence Means Responsibility. Stepping out on your own is a big deal, but it’s not all fun and games. Living away from home means you have to take care of yourself. Do your best to prepare your son or daughter for what that means. Food doesn’t just drop out of the sky, and gas doesn’t magically appear in their car. Independence means responsibility.

College Isn’t Cheap. Even if your kid is going to a small community college, they’ll still probably have a few thousand dollars of tuition to pay. If you break it down, one class can cost $1,000 at the very minimum! And that doesn’t even include books. That means skipping class or blowing off homework is a waste of money—and a big fat dent in the GPA.

Choose a Major Wisely. Help your teenager find his or her passion. This isn’t a must before they step on campus, but simply plant a seed that gets them started thinking about what they want to do with their life. You don’t want them graduating with a degree that leaves them unfulfilled or unable to find a job.

Friends Matter. New friends mean new opportunities and new social situations. Who you hang out with definitely influences how you spend money and the decisions you make. Without being overbearing, remind them how important it is to have positive friends who build them up instead of bringing them down.

If your soon-to-be college student doesn’t seem to care, it might just take them messing up a few times to understand how important it is to have a plan for their money. They’ll come around quicker than you think once they have that first-hand experience.

Remember, you can make all the right decisions and give all the right advice, and it’s still possible that they will mess up. As a parent, just be there for support and to reinforce these principles throughout their college experience.

Growing up as Dave Ramsey’s kid, Rachel Cruze learned the basic principles of money at an early age. She travels across the country teaching those same principles, in a personal and passionate message of money and hope, to teens and young adults. Rachel’s also the host of Generation Change, a course that teaches teens about money and empowers them with the skills they need to become financially responsible adults. To find out more about Rachel, visit daveramsey.com/speakers or follow her on Twitter at @RachelCruze.

Excerpt from Wealth of Possibilities: Navigating Family, Money, and Legacy by Ellen Miley Perry

Another way to build connection in families of wealth is by coming up with a family mission statement that describes the values and purpose of the family’s collective life. This document is, in essence, communication immemorial. Developing a mission statement is a potentially wonderful means of establishing clarity and encouraging unity among family members. What many don’t realize, however, is that the process by which it is created is as important to connection as the statement of purpose that emerges. Keep the following in mind when looking to create your family’s mission statement:

• Hold a series of special meetings. Take time to discuss the “big picture.” What do we represent as a family and what is the purpose of our resources? Give each question the appropriate amount of thought and discussion.

• Hire a skilled facilitator to assist you. As with family meetings, a facilitator, whether a trusted colleague or a consultant, can be invaluable in an important discussion such as this—better yet if you can find one who has been through this before. Consider bringing in someone to organize and then move the discussion forward, leaving interested family members to voice their thoughts and concerns without having to worry about the specifics of the ultimate product.

• Take your time. A year or two—more, if necessary. Remember, most families function without a mission statement. Allow ample time (and space) for the mission that resonates best with your family to emerge in the family consciousness.

• Don’t try to write the statement all at once. It often makes sense to let the spirit of the mission statement percolate at your family meetings, then assign a point person to draft a statement for review. While some families could conceivably knock out a dynamite mission statement in an afternoon, most find themselves haggling over words. Better to sort this out over a series of meetings, and with a facilitator.

• Look to the family dynamic. Anticipate how your family works together. Who dominates discussions, who quietly has good ideas, who gains consensus well, who causes conflict, and who is passive in the moment and then derails the process later? Understand the patterns that exist and try to address them through the process. Read More

These days, people are thinking more about how to make smarter decisions with their spending. In fact, simple spending cut-backs can mean a huge difference to your family’s bank account. Get back to the basics of what you really need, and you’ll eliminate unnecessary spending and stress, while keeping more cash in your pocket.

Here are some easy tips to start you down the road to smarter spending:

• Create a family spending plan. Start a weekly budget meeting with your family to make everyone aware of spending habits. Be sure to keep track of all transactions made throughout the week and prioritize necessities over luxuries. With families increasingly concerned with how they are spending, according to a recent Cricket Wireless survey, nearly two-thirds of Americans surveyed report paying bills as their highest priority and are using tax refunds to cover basic necessities.

• Compare the rates. When reviewing monthly bills, compare the amounts you’re paying with others. According to Cricket’s survey, wireless phone plans, cable and electricity are considered the top most overpaid bills by consumers. Look for online comparative tools that can help evaluate the advantages between service providers. Consider easy ways to scale back spending on these items, such as going with a more flexible no-contract, prepaid wireless service that can be half the cost than contract carriers, or eliminate the number of movie channels subscribed to through your cable to curb spending and instead go with a lower cost digital movie subscription service.

• Carpool with a buddy. Ask co-workers if they would be interested in carpooling with you. This will save you and your co-worker gas money, while also being environmentally friendly. Can’t find a co-worker who lives in your area? Many online websites exist to link those interested in sharing rides per region.

• Cut those coupons. It may sound old fashioned, but you can score great deals on food and home goods when you dust off those scissors. Clip through your local Sunday newspaper, or search online. Many online sites offer extreme discounts on meals, gifts and services specific to your locale.

• Eat economically. If you love eating out on a regular basis, plan to eat breakfast at home. Save your hard-earned cash for leisurely lunches and dinners where you can unwind with family and friends. This trick will lighten the load on your pocketbook, which is always easier to digest.

For a comparative tool of wireless carriers and other pricing information, visit www.mycricket.com.

Parents sending their children off to college for the first time typically have prepared years in advance for the big occasion. And since tuition rates continue to increase, parents are, more than ever, focused on having their child be successful and graduate.

The average cost for an in-state public college for the 2012–2013 academic year is $22,261, and a moderate budget at a private college averaged $43,289. While many American families have seen a sharp decline in their household income, higher education for their children is still a top priority.

So, what might parents be overlooking when trying to ensure their child starts off a career with a college degree? It’s the school’s dining program and the role it plays in campus life, including the location(s), facilities, the menu, meal plans, hours, operating days and more.

It can and will be the most powerful aspect of day to day life for your son or daughter to connect to their class, make friends, see and be seen and connect to the school. The sooner they connect to one another, the more likely they are to return as sophomores and eventually graduate.

Social architecture is the conscious design of an environment to encourage social behaviors that lead toward a goal — in this case, solidifying college students’ connection to one another, and a commitment to their school, through dining.

Social architecture is a catalyst for students to connect, make friends and be social; it’s crucial to helping students connect with their school and develop bonds with other students, which are both critical to student success. Students who live and dine on campus tend to have higher GPA’s and are more likely to graduate.

A meticulously planned, student-focused and socially rich dining program on a campus can help a student graduate for the following reasons:

• Crucial social steps: Out of the house for the first time, living alone or with roommates he or she doesn’t know, often far from home, studying challenging material and without the life skills of a mature adult – your child’s well-being is largely dependent upon the friends and colleagues he meets at school. Meals are when families, coworkers and friends come together and bond, and it’s also when students come together to meet new people, study or just blow off steam.

• Meal plan: These have often been the bane of a student’s existence, complete with limited food options, which are often scattered and frequently hamstrung with time limits. And, they can be expensive. But students won’t complain about a meal plan’s price is they’re happy with what they get. Many conscientious students today choose a vegetarian or vegan diet, or they have other diet restrictions, such as gluten, due to their health. A meal plan should complement a campus and the student clock, which is different from that of an administrator’s schedule.

• On-campus: It’s important to unify meal plans with dining halls; otherwise, students tend to experience the campus in a fractured manner. Meal plans that offer off-campus options are even more problematic, because that steers the focus away from studies, students and other areas of university life.

• School pride: If universities are like businesses, then loyal alumni are like customer loyalty and positive word of mouth wrapped in one idea. When all of the factors come together for a pleasant, sociable, convenient and generally inviting dining hall, it’s a concrete and positive way students can see themselves as lifelong proponents of their schools.

David Porter, FCSI, author of “The Porter Principles: Retain & Recruit Students & Alumni, Save Millions on Dining and Stop Letting Food Service Contractors Eat Your Lunch” (www.porterkhouwconsulting.com) and chief executive officer and president of Porter Khouw Consulting, Inc., a foodservice master planning and design firm. David has more than 40 years of hands-on food service operations and consulting experience and is a professional member of the Foodservice Consultants Society International. Porter Khouw Consulting has worked with more than 350 clients to conduct market research and develop strategic plans, master plans and designs for the college and university market. Porter is a graduate of the prestigious hospitality program at Michigan State University and has been recognized repeatedly as a leader in his field.

“My 5-year-old son owns a house, a car and WHAT?”

Child identity theft is a fast-growing crime with the number of under-age victims estimated to be as high as 500,000 a year, far exceeding adult identity theft. Criminals target children because kids have a clean credit record or no credit file, and the theft can go undetected for years—usually until the child applies for a summer job, a student loan, or a credit card.

Until that time, a thief can be racking up debt with credit cards and loans in the child’s name. Once the crime is discovered and stopped, the child can be held responsible for the debt and unable to obtain legitimate credit for months or even years.

Many people assume their children are not vulnerable because their family isn’t wealthy, but identity theft is unrelated to income level. Any child with a social security number could be a victim, but a theft can begin with information as basic as a child’s name, address, and date of birth.

Information can be accessed from school records, medical office records, dental records, church records, a lost or stolen purse or wallet, a home invasion, discarded documents, the Internet, and by other methods.

There are preventive measures parents can take to protect their children’s identity. A first step is for the parents to obtain a free annual report of their own credit rating. To discover if credit has been used in a child’s name, they should contact one of the credit rating agencies: Equifax, Experian, or TransUnion.

Additional actions include:

• Teach Your Children Well! Educate your children on the risks of giving personal information to anyone.

• Do Not Share! Do not put your child’s social security number (SSN) on school, medical, insurance, and other forms.

• Keep it Safe at Home! Don’t have your child’s birthdate or SSN in your wallet or purse or at work.

• Don’t Reveal Personal Information on Social Media. Tell your children not to place their birthdate or address on social networking sites.

• Be Wary of Scams. Warn your children about offers they receive by phone, mail or email that could be scams.

• Get on the Do Not Call List.  Register all your phone numbers on www.donotcall.gov or call 888-382-1222.

• Question Authority!  Ask your children’s teachers or school administrators what they do to safeguard student records.

• Watch Your Money! Always deposit bill payments and other mail in a locked mailbox or at the post office.

• Keep It With You or Lock It Up! When traveling with your laptop and similar devices, keep them with you or locked in a hotel safe.

• Shred It! Use a cross-cutting paper shredder for all old documents containing sensitive information.

• Keep Documents Secure! Keep birth certificates, passports, school diplomas, banking information, and other important documents in a locked container or file cabinet.

Robert P Chappell, Jr., author of “Child Identity Theft: What Every Parent Needs to Know,” is a veteran law enforcement officer who began his career in 1985 with the Blacksburg Police Department in Virginia. He has worked with the Virginia State Police since 1987.  He has served as a trooper, a narcotics special agent, uniformed sergeant, first sergeant, assistant special agent-in-charge with the Bureau of Criminal Investigation, and currently as a lieutenant with the Bureau of Field Operations. Chappell is also a decorated veteran who served 25 years with the U.S. Army Reserve. He retired as a lieutenant colonel in 2008. For more information visit www.ChildIDTheft.org. 

The high cost of a college education means that a lot of students are looking for financial aid to help pay for it. But the competition can be stiff. According to the most recent National Postsecondary Student Aid Study, only 5.5 percent1 of undergraduate students received non-athletic scholarships. What can students do to give themselves the best chance of receiving some much-needed scholarship money?

“Start your search and application process as early as possible,” says Tiffany Turner, Program Manager at International Scholarship and Tuition Services, Inc., who manages 30 scholarship programs including Foresters™ Competitive Scholarship Program2. “Give yourself plenty of time to find scholarships that fit your skills and needs. And most applications will require essays and letters of recommendation, so you want to make sure you have plenty of time to pull those together.”

Turner also encourages students to apply for as many scholarships as they qualify for. “There aren’t a lot of big, full-ride scholarships available, but many smaller scholarships can add up to a surprising amount.”

The Scholarship Application
When applying for scholarships, attention to detail is an important step to success:

• Follow directions carefully. Make sure you have all the supporting materials required, but don’t include anything that is not requested.
• Fill out the entire application. Don’t skip any questions. If one doesn’t apply to you, make a note of that on the application. If you’re not sure how to answer, you can contact the scholarship coordinator.
• Proofread carefully. Typos and grammar errors can hurt your chances. Have a parent or teacher double-check your application.
• Watch all deadlines. Set up a calendar for application deadlines and make sure you meet them. If you miss one, your application won’t be considered.

Many scholarship applications require some kind of written essay or letter.

• Be specific. Focus on the topics the application requires. Use concrete examples rather than vague, general statements.
• Be yourself. This is your chance to show scholarship providers what kind of person you are and why they should help pay for your education. Let your personality come through, and include details that reveal who you really are.
• Be honest. Never exaggerate grades, skills or experience. If you find yourself feeling the need to do so, you’re probably not applying for the right scholarship.  Read More

Although it certainly seems intuitive that kids should have to work to earn their allowance, I have found—and most experts agree—that it’s not the most sensible way to set up an allowance system. By providing our children with an allowance that’s unencumbered by chores, I believe we are more likely to raise kids who become more comfortable with money. They’ll be better equipped to understand that money is simply a means to an end and not an end in itself — a VERY important lesson. When we can foster positive associations with money and engage our children in open money conversations, we can start to demystify this once taboo topic. By removing the link between chores and allowance, we can raise what I call more “money comfortable” kids.

All that being stated, most parents still tie allowance to chores. Most parents also don’t necessarily explain the purpose of an allowance. The fact remains that parents need a different, and better, approach. Although there are many noble efforts being done in schools, they are unfortunately not the answer. Kids are statistically VERY unlikely to learn anything other than basic money math in school. The burden of raising money smart and money comfortable kids still falls on you, the parent. And if you’re not active about it, your kids will just learn by observing you.

Teaching Your Kids About Earning Money — A Different Lesson
In her short paper, Motivation Theory Applied to the Allowance/Chore Debate, Karyn Hodgens (owner of Kidnexions and author of Raised for Richness) most clearly identifies why allowance and chores should not be tied together. It’s best to look at what each — allowance and chores — are designed to accomplish. An allowance is a tool to teach kids how to handle money, make smart money choices and eventually become “money comfortable.” Providing money for chores is a way to teach kids that earning money requires effort. This is a terrific lesson — just a different lesson than the one allowance is designed to teach. Paying children for chores that they are required to do and will always be required to do while living at home (e.g. clearing the table, making the bed, brushing teeth) also leads to a problem when they become older and might be making their own money (not from an allowance). They can’t opt-out of those chores (now or later), so why pay them for those activities in the first place and create a possible conflict down the line.

To teach children the incredibly valuable lesson that making money requires effort, you can give them what Karyn describes as “above and beyond” chores that they aren’t required to do (e.g. shoveling snow, raking leaves, etc.).

Reduce Money Conflicts
The other big reason to untangle basic chores and allowance is that it helps reduce potential conflict and negativity associated with money. There are no threats made to take away money when a bed isn’t made. Your child can certainly be admonished when the chores go undone, but there’s no associated “money negativity.” With so much negativity in our society associated with money, I feel it’s essential to build up as many positive vibes when it comes to money as possible, so kids feel good about the green stuff.

Ditch the Pig
The piggy bank has been around forever. But here’s the problem — it doesn’t work. First, it’s pretty obvious that if you’re trying to make someone comfortable with something, you certainly don’t hide it from them. The piggy banks suggests to the child that the parents don’t feel they are mature enough to deal with money. If that’s the case, then why even provide an allowance? Piggy banks are also typically associated with the concept of socking money away for a “rainy day.” As far back as the 60s, The Time/Life Guide to Family Finance noted that the idea of saving money in a piggy bank for a “rainy day” was too abstract for younger kids. I’ve found that kids are very good at setting savings goals that they can achieve in the not-too-long-term, enough for them to build the very important money smart behavior of delayed gratification, made famous in Psychologist Walter Mischel’s “Marshmallow Tests.” Ditch the pig. It’s time for a new, clearer paradigm. Read More

The holidays are upon us, and rumor has it we’re supposed to be joyful. But if you’re one of the millions of American families caught in the economic crunch, you’re anything but. Your kids expect the moon for Christmas, and like George Bailey in It’s a Wonderful Life, you’d love to lasso it for them. Unfortunately, the “moons” they’re asking for—trendy clothes, say, or high-tech devices—remain out of reach. It seems the Season of Giving only spotlights how little you can give—and how much your kids are focused on taking.

It’s true. Kids are disconnected from the harsh economic realities that most adults struggle with. That’s partly because we shelter them from the truth, but also because we the parents aren’t in reality about it, either.

Many adults don’t want to acknowledge that the world has undergone a fundamental shift. Everything about the way we build wealth and think about money has changed. Yet we’re still living—and yes, giving—like people who are able to work 40 years for the same company and retire comfortably with the gold watch.

In a way, we’re just as spoiled as our kids. We all need to change our unsustainable ways, and that means breaking the paradigm of parents as beneficent providers and kids as passive recipients. It breeds not only an entitlement mentality, but also an employee mindset—which will not serve kids well in the future.

Parents must teach kids the basics of entrepreneurship. Generating multiple streams of income (earned, passive, and portfolio) is the only logical path to financial freedom in a global economy where half of all college grads are moving back home jobless and saddled with debt.

Of course, I am not suggesting we serve up a stern family lecture about the new fiscal reality along with the Christmas cookies and hot cocoa. (That would be a Grinch-y thing to do!) What we can do is minimize spending on gifts, concentrate on the togetherness aspect of the holidays—and after the tree comes down, call a family forum.

What will you say in that post-holiday forum? Consider the following suggestions:

Be honest about your financial situation. Most families hide financial struggles from children to keep them from worrying. This is a mistake. While reassuring your kids that you will take care of them and you’ll all be okay no matter what, be straight with your kids. They can handle it.

It’s okay to say something like, ‘After Dad lost his job and took this new one, he makes half of what he used to. Also, we have to buy our own health insurance, and it’s very expensive. We have a lot of bills to pay and we need to fund our retirement account. That means we’re all going to have to cut way back on unnecessary spending.’ Read More

Forbes has just released its list of the 400 Richest People in America. The combined net worth of these men and women clocks in at a staggering $1.7 trillion dollars. And here’s the truly amazing part: Some 70 percent of this year’s 400 built their fortunes from the ground up. If you’re a parent, this statistic may lead you to wonder: Will my kids ever have a shot at this kind of success?

Absolutely, but first they’ll have to learn to think and work like entrepreneurs.

The Forbes 400 list proves that you don’t have to be born wealthy. You just have to have the right skills and know how to leverage them. But here’s the thing: Your chances will dramatically improve if you can learn these skills, and the mindset to apply them, at an early age.

Of course, raising billionaires might not be your goal. Maybe you just want your kids to grow up to be financially stable, live comfortable lives, and maybe retire someday. Even if that’s the case, they must learn to think about working and building wealth in a new way. That’s because the world is undergoing a profound shift.

The old path—get good grades, go to college, get a good job, and save money—no longer leads anywhere you’d want your kids to go. Degrees are a dime a dozen. College grads are moving back home with six-figure debt. Gold-watch jobs are a relic of another era. We’ve entered the age of the entrepreneur, and those who blindly pursue the rules of an earlier time will be left behind.

A former car dealership manager who made the leap to entrepreneurship and motivational speaking, I am teaching my 16-year-old son the ropes of real estate investing. Greg Junior is on track to amass a net worth of a million dollars by the time he starts college.

Teaching kids the basics of entrepreneurship is not a radical notion. It’s a necessity. Even people who do end up working for someone else will be expected to think and work like entrepreneurs. The more we narrate the mindset and the skills of entrepreneurship to our kids—and even better, let them experience the reality for themselves (see attached tipsheet)—the more suited they’ll be for tomorrow’s workforce.

Teaching these foundational skills is not optional if we want our children to be able to maintain even a minimal standard of living.

There are certain fundamental truths parents need to teach their kids about being an entrepreneur. Here are some of the most important (keeping in mind that their appropriateness may depend on the ages of your kids):

Mindset matters. The old path to success—get good grades, go to college, get a good job, work hard for 40 years, and retire comfortably—no longer works in a flat global economy. Even if your children manage to find a “good job” (and there are fewer and fewer of them), the income it yields may not be enough to maintain a comfortable lifestyle. Multiple streams of income will be necessary—its’ important to have all three types: earned, passive, and portfolio—and kids need to get their minds around this reality now.

It’s critical that kids learn how to think about money in a new way. Teach them that the old paradigm of getting paid for your time is no longer adequate. What happens if the job ends or you can’t work anymore or the pay isn’t enough to cover the bills?

You might explain the benefits of, say, investing in a gumball machine. Say, ‘While you’re at school or some other part-time job, the machines are sitting there making money for you.’ Time is more valuable than money—this is the entire basis for the argument for passive income, and children can understand it.

Of course, the entrepreneurial mindset isn’t just about wealth building. It’s also about being able to find fresh solutions to problems no one has ever thought to solve, to figure out how what you offer can be applied to new markets, and to team up with other people in such a way that everyone wins.

Opportunity is everywhere. Develop a nose for finding it. As a parent, it’s up to you to point out opportunities as you see them. If you’re at a golf tournament in July you can say, “Wouldn’t this be a great place to sell ice water, sunscreen, and hats?” Or if your child is talking about how no one at afterschool daycare can ever seem to get their homework done, you might say, “Wouldn’t it be great to start a business where high school students come to afterschool daycares to tutor younger kids?” Ask them how they think such a business might work. Do this regularly and before you know it, kids will be thinking up ideas on their own.

Your brand will create the foundation for your business. Depending on their ages, your kids may or may not be familiar with the word “brand.” But explain to them that, basically, it comes down to what they want to be known for. Neatness? Friendliness? Trustworthiness? Then, start a dialogue on how to make that happen—and how to avoid doing things that might tear down that brand.

Let’s say your child is a babysitter and wants to be known for dependability. Talk through what that means: Always show up on time, for instance. Don’t chat on the phone while you’re supposed to be watching the kids. And don’t cancel unless it’s absolutely necessary—and wanting to go to a cool party you just heard about isn’t a good excuse. Let the customer down just once and all your hard work was for nothing.

You need a differentiator. Help your kids determine what makes their business different and explain how it will bring them more business. Maybe they offer an exceptional level of personal service. Maybe they cater to a certain group or meet a particular need. Maybe they’re eco-friendly. Help kids talk through what makes them different and better. Ask them how they might play up their differentiator and use it to get themselves seen in a crowded marketplace.

If your son is a dog walker, he might always wear a ‘uniform’ with his name on the pocket. It will make him seem more professional and trustworthy to people worried about turning their beloved pet over to a teenager. Or if your daughter is a babysitter, she might always bring a fresh batch of homemade cookies or a selection of fun DVDs to the house. The kids will specifically ask for her.

Know the value of marketing. Having a great business idea is one thing. Telling people about it is another. Help kids figure out ways to maximize their exposure without spending a ton of money (which they probably don’t have) or turning off potential customers with a hard sell approach. Teach them to introduce themselves and talk about their business when it’s appropriate: “I heard you mention your dog, Buster. I wanted to let you know I have a pet sitting business if you ever need that.”

Specifically, you might work with them to develop several “scripts” (elevator speeches) about their business to use in a variety of settings. Also, help them create some simple business cards to hand out.

Sometimes you have to give something away up-front. Explain that before people will be willing to pay for your product or service, they need a taste of how great it is just to get their attention. That might mean giving out a free sample of their homemade salsa or offering a free hour of math tutoring to new customers. Read More