Day 84: Want to raise entrepreneurial kids? Don’t give them pocket money!

Ted speaker Cameron Herold thinks that we need to keep an eye out for kids with entrepreneurial skills. He believes that we need to nurture those skills, just like any other life skill. In his Ted talk “Let’s raise kids to be entrepreneurs” Cameron talks about why giving kids pocket money could be sending out the wrong message.

Day 84- Want to raise entrepreneurial kids- Don’t give them pocket money!

Why giving kids pocket money can send out the wrong message

Cameron doesn’t believe in giving his kids pocket money, he believes it sends out the wrong message and breeds kids to expect a paycheck each week. It’s the ‘job’ mentality. Now, that’s fine if you are not raising your kids to be entrepreneurs, but if you are, your kids allowance could be one of the most significant business lessons of their life.

Cameron doesn’t give his kids pocket money in the traditional sense but he does give them opportunities to earn money. He teaches his kids to look for opportunities around the yard and house for things that need to be done, that they can bring to him and negotiate a price for. This not only teaches them negotiation skills but the crucial skill for every entrepreneur – looking for opportunities.

Not every kid will have entrepreneurial skills, but it is important to recognize the kids that do and provide them with the skills are resources to develop those skills. Maya Penn’s parents helped her to start a business at just eight years old and now in her teens, her entrepreneurial spirit is thriving.

Ted Speaker  Cameron Herold quote compiled by website confetti

If I ever have kids I think that I would probably follow Cameron’s lead to an extent. I would probably still give my kids an allowance, but it would be low, allowing for the opportunity for kids to earn more by creating opportunities for themselves.

lesson number with 84

What do you think? Do you know a kid with that entrepreneurial spark? Do you think those traits should be nurtured from an early age? And what about pocket money? Should it be earnt and not given out? Let me know your thoughts in the comment box below.

Vanessa Rose
  • Debt Free Divas

    Thanks for sharing this. My husband (and then now on FB) were having this exact question of whether to give allowance. I’ll have to watch this.

    • WebsiteConfetti

      Hi Debt Free Divas thanks for dropping by. I personally am divided on this. I think half the fun of childhood is getting pocket money to spend however you want. We have our whole lives to be sensible with money. On the other hand allowances can be a great teaching tool to set up kids in the right financial mindset from early on. I think when I have kids I will give a low amount of pocket money but then use Cameron’s advice and allow kids to use their entrepreneurial skills to negotiate opportunities around the home to earn more money. Thanks again for stopping by!