Pricing & Money Management
A Step-by-Step Guide for K–3 Parents to Teach Kids About Earning, Budgeting, and Saving
Why Money Management Matters for Kids
Running a neighborhood car wash is about more than just washing cars—it’s a fun and practical way for kids to learn how money works! 💵
For many parents, money topics can feel complicated—especially if you’re not a business owner yourself. But don’t worry! In this post, we’ll break it down into simple, hands-on steps so that your child can learn about:
✅ Setting fair prices 💰
✅ Counting money & making change 🔢
✅ Tracking earnings & understanding profits 📊
✅ Budgeting for supplies & reinvesting in future projects 🛒
✅ Saving, spending, and even giving back to charity ❤️
By introducing these concepts in a playful, real-world way, your child will gain skills that will help them manage money wisely as they grow. 🌱
Setting a Fair Price for a Car Wash 🚗💰
Step 1: Understanding Costs – What Do We Need to Buy?
Before setting a price, your child needs to understand that running a business costs money! Just like a lemonade stand needs cups, lemons, and sugar, a car wash needs supplies to operate.
🧼 Basic Supplies for a Car Wash:
Soap & Sponges – The essentials for scrubbing down each car
Buckets & Towels – Used for rinsing and drying
Hose & Water Usage – Some areas may charge for water use
Sign-Making Materials – Posters, markers, and balloons for advertising
💡 Parent Tip: Let your child write down or draw a list of all the supplies. If they can’t write yet, talk through it with them. Making a shopping list helps them visualize the costs and understand that before making money, businesses have to spend money!
Step 2: Deciding How Much to Charge
Once your child understands what supplies cost, they can set a fair price that covers expenses and leaves room for profit.
A good rule of thumb for a kids' car wash:
💦 Basic Wash (Soap & Rinse Only) → $5 per car
🧽 Wash & Dry (With Towels or Wax) → $7 per car
✨ Deluxe Package (Tire Shine or Interior Vacuum) → $10 per car
👉 Example:
If your child spends $20 on supplies and charges $5 per wash, how many cars do they need to clean before making a profit? 🤔
(Answer: 4 cars cover costs—every car after that is profit!)
💡 Lesson for Kids: Businesses don’t make money immediately—they need to cover their costs first before earning extra.
Counting Money & Making Change 💵
Many K–3 kids are still learning how to count money and give change, so this is a perfect real-world math lesson!
Step 1: Practicing at Home
Before car wash day, role-play with your child so they feel confident handling money.
🔄 Fun Practice Game:
Set up a pretend "car wash register" with play money or real coins.
Take turns being the customer and the car wash worker.
Ask questions like:
"I’m paying with a $10 bill for a $5 wash. How much change do I get back?" (Answer: $5!)
"I only have $20. Can you make change for me?" (Answer: Give them back $10!)
🎲 Make It a Game! Let your child "earn" stickers or points for each correct answer—turning money lessons into playtime makes learning fun!
Step 2: Keeping Money Safe & Organized
To avoid losing money or getting confused, set up a designated "money station":
💰 A labeled cash box or pouch – A safe place to collect money
📜 A clear price list – So customers know exactly what to pay
👦 A "Money Manager" role – One child (with adult help) keeps track of payments
💡 Confidence Booster: When kids successfully count change in front of a real customer, they feel proud and responsible!
Tracking Sales & Understanding Profits 📊
Once the car wash is running, it’s time to keep track of earnings so kids can see how money adds up over time!
Step 1: Recording Each Sale
📖 Notebook or Chart: Write down each sale and total earnings.
🔢 Sticker Chart: Kids add a sticker every time they wash a car.
📊 Daily Totals: At the end of the day, add up all the money together!
👉 Example: If your child washes 10 cars at $5 per car, how much money did they make?
(Answer: $50!)
💡 Real-World Business Lesson: Every successful business keeps records of sales to track their earnings and growth!
Budgeting for Future Car Washes 🛒
If your child wants to do another car wash, they need to plan ahead and budget for supplies so they don’t have to start from scratch every time!
Step 1: Breaking Down the Budget
Teach kids to divide their earnings into different categories:
1️⃣ Total Money Earned (from washing cars)
2️⃣ Supplies Cost (soap, sponges, decorations)
3️⃣ Profit (what’s left after expenses)
Ask your child:
🛠️ "Do we want to buy better sponges or bigger signs for the next car wash?"
📈 "Should we save some money so we don’t have to buy everything again?"
💡 Business Lesson: Companies don’t spend all their money—they save some for growth!
Encouraging Saving & Giving 💖
Once your child has earned money, they can decide how to use it wisely!
Step 1: Teaching the "Three Jars" System
Encourage kids to divide their earnings into three categories:
💰 Savings Jar – Money for a bigger goal (a toy, book, or event)
🛍️ Fun Money Jar – Money for small treats now
🎁 Giving Jar – Money for donations or gifts
This simple system teaches balance—kids learn to enjoy spending while also setting goals!
Step 2: Teaching Kids About Giving Back
If your child is washing cars to support a cause, help them understand how their earnings help others.
✅ Let them pick a charity or cause they care about (animal shelters, food banks, their school).
✅ Show them how donations work by taking them to drop off the money.
✅ Talk about how businesses give back to their communities!
💡 Lesson for Life: Teaching kids that money can be used to help others builds compassion and responsibility.
Conclusion: Building Financial Confidence for Life! 🚗💵
By involving your child in:
✅ Setting a fair price
✅ Counting and handling money
✅ Tracking their earnings
✅ Budgeting and saving for future events
✅ Donating to a cause that matters to them
You’re giving them lifelong financial skills—all while they have fun running a car wash! 🎉
👉 Next Up: Learn how to keep your car wash safe & running smoothly!
Read Next: Car Wash Safety & Efficiency Tips 🚦👷
