The first £20 from a project can feel like £20 to spend. But some of that money may be needed to pay for materials already used, finish outstanding orders or return money an adult lent to the project. Counting sales is only the beginning.
Earning, saving and reinvesting become useful learning when a young person can explain what the money represents and why they are choosing one use over another. Start with a practice example before handling real sales.
Work out what is available
Imagine a supervised craft project receives £30 from ten sales. The materials used cost £12 and the agreed stall contribution is £3. That leaves £15 before any other costs or obligations. The £30 is sales revenue; it is not the same as profit or spare cash.
Keep a record of money in and money out, including who paid for the materials. Unsold stock, unpaid bills and refunds can affect the picture. An adult should oversee payments and check any applicable trading and tax responsibilities.
Give the money a job
Rather than imposing a universal percentage split, identify the next needs. Is there an outstanding payment? Would the young person like to save towards something personal? Does the project need replacement materials? Would they choose to contribute to an agreed cause?
Different projects justify different choices. Saving all £15 may be sensible if the project has ended. Reinvesting a small part may make sense if there is evidence of further demand. Spending money on new stock simply because “businesses should grow” can create waste.
Reinvest to answer a question
A useful reinvestment has a purpose. Spending £4 on one new material could test whether a product becomes more durable. Buying £40 of packaging before the next event has been agreed is a much larger commitment.
Ask: what will this purchase help us learn or deliver, what is the maximum we can lose and what would make us stop? Keep essential family money outside the project. Young people should not borrow, use credit or feel responsible for household finances to make an activity work.
Review after the next attempt
Suppose the £4 material test improves the product but takes twice as long to use. That is a finding worth discussing, even if sales rise. Reinvestment is not automatically successful because money was spent on the business.
Keep the language open: “What did this choice make possible?” and “Would we do it again?” A young person who can recognise a commitment, reserve money and explain a trade-off is building judgement. The amount involved can remain very small. For an earlier starting point, our earning and saving at home guide offers related family ideas.
