Lemonade Stand Lessons

Hey Money Mentors!

Think lemonade stands are just cute summer fun? Think again. They're secret weapons for raising financially savvy kids.

Did you know? Warren Buffett's first business venture at age 6 was buying six-packs of Coke for 25 cents and selling each bottle for 5 cents. That's a 20% profit margin!

Mikaila Ulmer began her lemonade business at 4 using her great-grandmother's recipe. Now 17, her "Me & the Bees Lemonade" is sold nationwide. From stand to brand!

MYTHS

Myth: Lemonade stands are just play, not real business lessons. Truth: They teach pricing, marketing, customer service, and profit calculation.

Myth: Kids are too young to understand business concepts. Truth: Even preschoolers can grasp basic money principles through hands-on experience.

BREAK IT DOWN

Age 3-5: Focus on counting money and making change. Let them decorate signs and greet customers.

Age 6-10: Introduce basic profit calculation. Help them decide on pricing and marketing strategies.

Age 11-14: Dive into more advanced concepts like profit margins and reinvestment. Encourage them to expand their product line or think about online sales.

TIME FOR ACTION

1. Set up a stand: Help your kid choose a location, make signs, and prepare their product.

2. Price it right: Guide them in calculating costs and setting a fair price.

3. Market it: Brainstorm ways to attract customers (samples, creative signage, etc.).

4. Count the cash: At day's end, calculate revenue, costs, and profit together.

RESOURCES

• Greenlight: Comprehensive guide on starting a lemonade stand.

• Lemonade Day: App with planning templates and budgeting tools.

• Alex's Lemonade Stand Foundation: Quick Start Guide and fundraising tips.

Remember, your role is advisor, not CEO. Let them make decisions (and mistakes). That's where the real learning happens.

Share this newsletter with another parent raising a future tycoon!

Until next time, keep building those money smarts!

Kamil Banc
MINI M🟡NEY MENTOR