The difference between earned and gifted income is an important but often confusing lesson for a child, especially because a majority of a child's income is typically gifted. Demonstrating the importance of earned income teaches your child that as an adult he or she will need to work for an income. Help your child understand this important lesson and gain a healthy work ethic through the following activity.

Activity

Have your child write down all the ways he or she obtains money. Then:

  • Ask your child if he or she knows the difference between earned money and gift money.
  • Have your child highlight all the actions on his or her list that represent earned money.
  • In a different color, have your child highlight all the actions on his or her list that represent gifted money.
  • Together, create a list of special chores or jobs that your child can complete around the house and for neighbors and friends to earn money.