Teaching Basic Business Skills to Middle Schoolers:
Pricing, Marketing, and Money Management Essentials
When middle schoolers, ages 11-13, start exploring small business ideas, it’s the perfect time to introduce them to basic business skills that make running a venture both enjoyable and rewarding. Simple concepts like pricing, marketing to neighbors, time and task tracking, customer service, and safe money handling provide a practical foundation for any budding entrepreneur. These skills help kids develop confidence, responsibility, and a sense of independence as they engage with customers and handle their own earnings.
This article breaks down essential business skills into kid-friendly steps, making it easy for young entrepreneurs to grasp these important concepts.
Setting Prices and Understanding Costs: Keeping It Simple
One of the first skills young business owners need is the ability to set fair prices. Middle schoolers should understand that pricing involves not only deciding how much they want to make but also covering their costs. This is an essential skill for any business, helping them learn to balance income with expenses and earn a reasonable profit.
Steps to Teach Simple Pricing and Costs:
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Calculate Costs First
Start by listing the costs associated with their product or service. For example, if they’re selling homemade cookies, they’ll need to consider the cost of ingredients like flour, sugar, and packaging. This helps them understand that making something has a price attached to it.
Set a Price Based on Costs
Explain that their price should be higher than the total costs so they can make a profit. For instance, if a batch of cookies costs $5 in ingredients and makes ten cookies, they might set a price of $1 per cookie to earn enough to cover costs and make some extra.
Consider Time and Effort
If the project is time-consuming or requires extra effort, they might consider adjusting their price slightly. This concept helps them learn the value of their time, especially as they balance business activities with school and other commitments.
By keeping pricing simple and directly related to their expenses, kids develop an early understanding of profit and cost control.
Basic Marketing to Neighbors: Spreading the Word Effectively
Marketing can be as simple as letting people know about their business. For young entrepreneurs, a bit of neighborhood marketing is a great way to reach local customers, build excitement, and start getting support from friends, family, and neighbors. Kids don’t need fancy advertising—sometimes a friendly introduction and word-of-mouth are all it takes.
Easy Ways to Teach Marketing to Kids:
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Create Simple Flyers
A flyer with clear details about their product or service—such as pet sitting, lawn care, or handmade crafts—can catch attention. Encourage them to add a personal touch, like a friendly note or a drawing, and include key information like their name, contact info, and service details.
Leverage Social Networks
Parents can assist by sharing their child’s business with local social groups or neighborhood apps (always with safety in mind). This allows kids to reach more people and shows them the importance of connecting with the community.
Practice a Friendly Pitch
If they’re comfortable, encourage them to practice a quick introduction. Something like, “Hi, my name is [Name], and I’m offering [Service] in our neighborhood. If you need any help, feel free to contact me!” Practicing a confident introduction can help kids feel more at ease and convey enthusiasm.
By starting small and focusing on their neighborhood, young entrepreneurs learn that marketing is about building relationships and trust, making it a friendly and approachable skill.
Time and Task Tracking: Learning to Stay Organized
Running a small venture requires kids to manage their time and keep track of tasks. This skill teaches middle schoolers the importance of organization, especially as they balance schoolwork, personal time, and their business activities. Developing good time management habits early on makes business and personal responsibilities more manageable and helps them deliver services reliably.
Tips for Simple Time and Task Tracking:
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Use a Calendar or Planner
Encourage them to write down appointments, deadlines, and important tasks. For instance, if they have dog-walking appointments or need to prepare for a bake sale, recording these in a planner or on a calendar can help them keep track.
Set Reminders
Digital tools like a phone or an alarm clock can help them set reminders for tasks. This might include reminders for upcoming jobs, time to check inventory (like crafting supplies), or following up with customers. Consistent reminders help them develop a routine.
Prioritize Tasks
Teaching kids to list tasks by priority helps them focus on what needs to be done first. For example, if they have a pet-sitting job and an order for handmade cards, they might prioritize based on deadlines or urgency. This skill helps them approach their work efficiently.
Time management encourages responsibility and shows kids how to organize their work effectively, even if it’s just a small side job.
Customer Service Basics: Creating Happy Customers
Good customer service is essential for any business, even small ventures. For middle schoolers, learning how to treat customers with respect and kindness can lead to repeat business and positive word-of-mouth. Customer service teaches empathy, patience, and communication—skills that benefit them in many areas of life.
Teaching Kids Customer Service Essentials:
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Being Friendly and Polite
Encourage them to greet customers with a smile and a friendly attitude, whether it’s a neighbor, family friend, or stranger. A simple “Hello” and “Thank you” go a long way in making customers feel appreciated.
Listening Carefully
Emphasize the importance of listening to customers’ needs. For example, if someone requests a specific service (like walking their dog at a certain time), listening carefully and following through builds trust.
Handling Feedback
If a customer has a suggestion or even a small complaint, teach them to handle it respectfully. Instead of taking it personally, they can see it as a chance to improve. Practicing a response like, “Thank you for letting me know—I’ll work on that,” helps them respond with maturity.
Practicing customer service shows young entrepreneurs the value of maintaining good relationships with customers, an important skill for business and beyond.
Safe Money Handling: Protecting Earnings and Managing Cash
Earning money comes with the responsibility of handling it safely. Teaching kids to manage their cash responsibly ensures they protect their earnings, develop smart money habits, and learn the basics of saving and budgeting. Safe money handling is about keeping money secure and understanding that each dollar has value.
Key Money Handling Skills for Middle Schoolers:
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Using a Safe Spot for Cash
Kids can start by designating a secure spot, like a lockbox or drawer, to store their earnings. This teaches them the importance of keeping money in a reliable place, rather than leaving it lying around.
Making Change and Tracking Earnings
If their business involves transactions, like selling snacks or crafts, they should know how to make change accurately and keep track of what they’ve earned. Practicing with real or play money can help them get comfortable with transactions.
Starting a Simple Savings Habit
Introduce the concept of saving a portion of their earnings, like putting aside 10% or more each time they make money. This helps them see the importance of not spending everything at once and starts a habit of thinking about future financial goals.
Safe money handling introduces kids to the basics of financial security, helping them respect the money they earn and make wise decisions about it.
Bringing It All Together: Building a Strong Foundation for Young Entrepreneurs
Basic business skills like simple pricing, neighborhood marketing, time tracking, customer service, and safe money handling create a well-rounded foundation for middle schoolers exploring small business ventures. These skills not only help them succeed in their current projects but also prepare them for larger responsibilities in the future.
With guidance and support, young entrepreneurs can confidently manage their ventures, learning through real-life experiences that shape them into responsible, savvy individuals. Starting with these foundational skills, they’ll gain the independence, resourcefulness, and creativity they need to navigate future entrepreneurial challenges.