Hi there!   

Your 11-year-old comes up to you and says, "Mom, I want to start a business." 

What’s your first reaction?

If you’re like most parents, you’re probably thinking: This is so cute! Or Oh no, I hope they’re not expecting me to do all the work…

I get it. My kids wanted to be part of an entrepreneurship fair last year, and I went through the exact same thought process. They ended up teaming up with their friends to create Tennis Buddies—decorated tennis balls that doubled as cardholders, candle holders and pencil holders. 

It was adorable. 

Hi I am Lakshmi, mom of two very enthusiastic and curious pre-teen boys! And in this edition we’re going to talk about kids and business! Let’s begin ⬇️

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Kid’s Business Idea!? 😵‍💫

I know what you’re thinking: Their business ideas might not be great.

But that’s not the point. The point is to encourage their entrepreneurial excitement.

So instead of immediately critiquing the idea ("Who would want to buy that?"), here’s what I did:

I asked them three simple questions:

✔️ What’s your product?
✔️ How are you selling it?
✔️ What does it cost you, and how much will you sell it for?

No long business plan. No spreadsheets. Just a quick way to help them structure their ideas.

As parents, we don’t need to run their business for them ,but we can help guide them in the right direction.

Should You Fund Their Business?

This is where I say: It depends.

If it’s a small project, like a lemonade stand or handmade bracelets, I’ll fund it. But they have to pay back the cost of materials, even if it’s just a few dollars.

If it’s a $2,000 idea? That’s a different conversation.

The goal isn’t to shut down their ambition. It’s to teach them that money isn’t just there. They have to think about it strategically.

If your kid is real serious about his/her idea and want to keep going, this guide will help you figure out the next steps!

What If Your Kid Makes $500?

(And yes, some kids really do!)

Here’s the rule I teach my kids: money should be split into three buckets.

1️. Save some: They should put part of it away for the future. READ this to help them get started!
2️. Spend some: Let them enjoy a portion of their hard-earned money.
3️. Give some: This doesn’t have to be charity. It could be buying a small gift for a sibling, parent, or grandparent, just something that helps them think beyond themselves.

I don’t give them a rigid percentage (because let’s be honest, kids don’t want a finance lecture). But the idea is to help them understand that money isn’t just for spending on themselves.

What If They Lose Money❓

At the fair, my kids quickly learned one of the most important lessons in business: sometimes, you lose money. 

They assumed I would just buy them all the materials, and whatever they earned, they’d get to keep.

NOPE. 

I told them: “I’m happy to fund it, but you have to pay me back from your earnings.”

That moment made everything real for them. Suddenly, they had to think about:
💰 Costs vs. Profits
💰 Pricing their product properly
💰 How many sales they needed to actually make money

Was it a huge loss? No, just $30. But it was real enough that they understood the concept of expenses.

And that’s why I want my kids to experience losing money early. When the stakes are low, the lessons stick.

The Biggest Fear Parents Have About Kids and Money

My husband’s biggest fear? That our kids will just blow all their money on junk. And some kids will.

But here’s the thing: you have to let them fail.

They need to feel what it’s like to run out of money. To spend on something useless and regret it. To realize that if they waste it, there’s no magic refill. 

And as parents, we can’t be the safety net. If they blow their earnings on random stuff, we don’t swoop in two weeks later and buy them the things they really wanted.

Let them feel the impact. Let them make that mistake now, when they’re 11, instead of when they’re 25 and swiping a credit card they can’t afford. 

That’s all for today’s issue, parents! 🩷

See you next week, with another interesting topic. But first, check this out 👀⬇️

Inside the Laid-back Parent’s Internet History this week: 

Note for My Fellow Laid-Back Parents 📧

If your kid wants to start a business, lean in.

Not to do it for them, but to help them think critically, make mistakes, and learn how money really works.

And who knows? Maybe that “silly little business idea” will be their first step toward something amazing.

Catch you next time,  

Lakshmi (Chief of Chill Parenting)