Lemonade stand...

Yes it's nearing the end of January... I know that... my kids know that. BUT, they do not know that people will not buy lemonade any time during the year. And due to that we got a good easy lesson in economics!

Jayden and Grace were going to do a pretend lemonade stand yesterday. They made a sign, took their little table up to the road and sat there. Matthew reminded me that we have lemon juice in the fridge, so I mixed up a bit of lemonade for them. Then they told me they were selling cups of it for 50 cents each (or in their words, two quarters...) So the bank (of Mommy) gave them four quarters for change. They went out there and proceeded to sell all of it in less than an hour!

After playing outside for a while longer, they came inside and started the math/economics lesson. I spread their money from their cup out on the counter. Jayden counted it and told me how much there was (2.75). I reminded her that she had taken out a loan from the bank of four quarters (yes I talked about how each one was 25 cents and four of them make up a dollar) and that she needed to pay the bank back. She paid back the bank, then she counted again (1.75). I then told her about when you start a business and someone else uses their time and equipment and 'stuff' to help you get started that you pay them for "parts and labor"... I charged her 15 cents for the lemon juice, water, sugar, cups, and pitcher and 10 cents for my work. She had to add up 15 + 10 and then pay me what she owed me.

After that, she counted again and figured up that they made a profit of 1.50!! I'd say a profit of 1.50, plus learning how to start a small business is pretty good for a lemonade stand on January 26th! They are already having Matthew and me help them figure out how to make more money in the summer.