Money Made Simple

What Are Costs?

A cost is anything you need to spend to make your business work. Costs include supplies like paper or flour, tools, printing, ingredients, and even transportation. Writing down all your costs helps you see how much money you’ll need to get started—and helps you avoid surprises.

Some items may be free, like using extra materials at home, but it’s still smart to count them. That way, you understand the full value of what goes into your business.

How to Set Prices

Your price should be more than your cost, fair to the customer, and reflect your time and effort. A simple rule is to charge about two to three times what it cost you to make something. You can also try bundles or discounts to encourage people to buy more.

Ask people what they think of your price, and don’t be afraid to adjust it as you learn. Pricing is flexible—what matters is learning what works for you and your customers.

Understanding Profit

Profit is the money you keep after paying for your costs. If your costs are $10 and you earn $25, your profit is $15. That profit can help grow your business, support a cause, or be saved for future goals.

At first, your goal might just be to cover your costs or test out your idea. That’s okay—profit will come with time and experience.

Planning What to Do with Your Money

Making money gives you choices. You can:

• Save part of it for later
• Reinvest in your business to buy more supplies
• Donate to a cause you care about
• Spend a little on yourself or share with teammates

Some kids create a money plan like 50% save, 30% reinvest, 10% give, and 10% spend. Having a plan helps you stay in control of your business and feel proud of how you use your money.

Keeping Track of Money

Even a small business needs good records. Use a notebook or the Budget Tracker to write down:

• What you bought and what it cost
• What you sold and how much you earned
• What’s left as profit
• How you plan to use your money

Keeping track builds your confidence, helps you talk to adults about your business, and prepares you for bigger goals.

Summary Points

• Costs are what you spend to make and run your business.
• Set your price higher than your cost and fair for the customer.
• Profit is what you keep after expenses—it helps you grow.
• You can use your money to save, reinvest, give, or spend.
• Track everything to stay organized and ready for new opportunities.
• Use the Budget Tracker and “Budget & Profit” section of your map.