7th Grade — Money & Business

Taxes, inflation, risk, and why a brand is worth more than a product.

Ages 12–13

The one idea

The number you're paid is not the number you keep, and the money you keep loses value if it just sits there.

Lesson 1 of 6

💼 Earn

Gross pay and take-home pay

The wage on the advert is gross pay. What lands in your account is take-home pay, after tax and other deductions. The gap is usually 20–30%, and nobody warns you the first time.

Jamal's first payslip, line by line. Your exact numbers depend on where you live.

Gross pay — what the advert said$2,000
Federal income tax$180
Social Security & Medicare$153
State income tax$67
Health cover he ticked yes to$100
What actually arrives$1,500

$500 a month never reached him. It was not hidden — it was on the payslip he had never read.

Lesson 1 of 6 · A story

The first payslip

Jamal's summer job paid $2,000 a month and he had already spent it in his head. The first payslip said $1,500. He assumed it was a mistake and took it to his manager, who went through it line by line: federal tax, Social Security and Medicare, state tax, and the health cover Jamal had ticked yes to on his first day without reading it.

Was Jamal robbed?

No — but he had never seen the gap between the number in the job advert and the number in his account. That gap is normally a fifth to a third, and knowing it in advance is the difference between a budget and a shock.

Lesson 1 of 6 · Try it

The usual mistake

Budgeting from the advertised salary. Every plan built on gross pay is out by hundreds of dollars a month before it starts.

The fix

Only ever plan with take-home pay. When someone quotes a salary, immediately ask what it is after deductions.

Do this

Take a $1,000 monthly wage. Subtract 20% tax. Then work out what that leaves per week.

Say this

"They offered you $1,000. What actually shows up? Always ask about take-home, not the headline."

Lesson 2 of 6

🏦 Save

Inflation eats savings

Prices creep up about 2–3% a year. Money in a jar earning nothing loses buying power every single year, quietly. Saving isn't safe by default — it's only safe if it at least keeps up.

$1,000 in a drawer, at about 3% inflation. The number never changes; what it buys does.

Today$1,000
In 10 years, buys$744
Still $1,000 in the tin
In 20 years, buys$554
In 30 years, buys$412
Safe the entire time, and down 59%

Nobody stole anything. The bars are what the same $1,000 will buy, and that is the number that matters.

Lesson 2 of 6 · A story

The $1,000 that shrank in a drawer

Nadia's grandmother put $1,000 in a tin in 2005 for Nadia's eighteenth birthday. In 2023 Nadia opened it and there was exactly $1,000 in it — the same notes, untouched, perfectly safe. It bought roughly what $650 would have bought in 2005.

Where did the missing $350 go?

Nowhere. The money didn't shrink; the prices grew around it. Cash sitting still loses value quietly every year, and it never shows up as a loss on any statement.

Lesson 2 of 6 · Try it

The usual mistake

Treating cash as the safe option. It is safe from losses and completely exposed to inflation, which is the slower and more certain of the two.

The fix

Money you need this year: cash. Money you need in a decade: it has to earn at least inflation or you are choosing to lose.

Do this

Look up what a cinema ticket, a loaf of bread, and a game cost the year they were born. Compare to today.

Say this

"That $100 in the jar buys less every year. Where does the missing value go?"

Lesson 3 of 6

🛒 Spend

Subscriptions and the slow leak

$9.99 a month feels like nothing. It's $120 a year. Six of them is $720 a year, mostly for things you forgot you were paying for. Small and recurring is how money leaves without anyone noticing.

Kwame's six subscriptions, priced by the year instead of the month.

Streaming — unopened for 5 months$156
$13/mo
Music app (paid twice)$240
Two accounts, same family
Game pass$120
Two expired free trials$144
Nobody chose to start these
Cloud storage — actually used$36
The only one they kept

$696 a year, of which they'd have chosen about $36. Nothing here was a decision — it was six defaults.

Lesson 3 of 6 · A story

Six things nobody remembered signing up for

Kwame's family sat down and listed every subscription leaving their account. There were six. Two were free trials that had quietly started charging, one was a streaming service nobody had opened in five months, and one was a music app they were paying for twice under different email addresses.

How did four of six go unnoticed?

Because each one is small, monthly, and automatic — three properties that make spending invisible. That is not an accident; it is the business model.

Lesson 3 of 6 · Try it

The usual mistake

Judging a subscription by its monthly price. $11 a month is not $11, it is $132 a year, renewed silently by default.

The fix

Multiply every subscription by twelve and ask if you would pay that in one go today. Once a year, list them all and cancel two.

Do this

List every subscription in the household. Multiply each by 12. Add up the total and sit with it.

Say this

"That's not $9.99. That's $120 a year. Is it worth $120 a year to you?"

Lesson 4 of 6

💝 Give

Giving is a system, not a mood

People who give consistently set it up once and stop deciding. Mood-based giving is bigger on good days and zero on the rest, and the average ends up far lower than they'd guess.

The same $120 a year, given two ways.

One December burst

$120

Arrives in their busiest month. Can only fund one-off things.

✓ Better deal

$10 every month

$120

Predictable. They can plan and hire against it.

Identical money. Reliability is the part the charity actually needs.

Lesson 4 of 6 · A story

The standing order that outlasted the mood

Every December Lena gave generously and felt wonderful. Every other month she gave nothing. Her total for the year was $120, all in one burst, arriving at a charity in the busiest month of its year. She switched to $10 a month by standing order — the same $120 — and the charity told her that predictable monthly money is the only kind they can plan staff around.

Same $120. Why is the monthly version worth more?

Because a charity can hire against money it can predict and can only buy one-off things with money it can't. Reliability is a feature of the gift, not just of the giver.

Lesson 4 of 6 · Try it

The usual mistake

Giving when you feel moved. Feelings arrive in December and after disasters, which is exactly when help is least scarce.

The fix

Set it monthly and let it run. Then give extra when you're moved — on top of the system, not instead of it.

Do this

Set a standing monthly amount, however small, and leave it alone for six months.

Say this

"Set it once. Don't renegotiate with yourself every month — that's how it ends up at zero."

Lesson 5 of 6

📈 Grow

Risk and return are tied together

Higher possible returns always come with higher chances of loss. Anything promising big returns with no risk is either misunderstood or a lie — and it's usually a lie.

Typical long-run returns — and what each one did in a bad year.

Savings account4%
Worst year: 0%. It has never lost money.
Government bonds5%
Worst year: down a few percent
Whole-market stock fund10%
Worst year: down about 37% (2008)
Crypto0%
No long-run average exists. Down 60%+ in several years.

Higher long-run returns are paid for with worse bad years. That is the trade — anything promising both is lying.

Lesson 5 of 6 · A story

The four accounts

Ravi's aunt showed him four places she keeps money and what each one had done in her worst year. The savings account had never lost a cent. The bond fund had dipped a little. The stock fund had fallen by a third in 2008 and then more than tripled since. The crypto she had bought "for fun" had halved twice.

Which one is the best?

The question doesn't have an answer without a date. For money you need next month, the savings account is the only right answer. For money you need in thirty years, it is the worst one on the list.

Lesson 5 of 6 · Try it

The usual mistake

Ranking investments by return. Return is meaningless without the matching question: how bad is the worst year, and when do I need this money?

The fix

Match the account to the deadline. Short deadline, boring account. Long deadline, you can afford to ride out a bad decade.

Do this

Rank five options — savings account, index fund, single stock, crypto, lending to a friend — by both risk and possible return. Notice the ordering matches.

Say this

"If it's safe and pays 30%, why isn't everyone doing it? What's the catch you can't see?"

Lesson 6 of 6

🧠 Mindset

Negotiating

Most prices and most offers are more flexible than they look. The people who ask get better terms than the people who don't — and asking politely costs nothing at all.

Six hours a week, for a year.

Accepted $10

$3,120

Didn't ask. It felt awkward.

✓ Better deal

Asked, then waited

$3,432

One sentence and eleven seconds of silence.

$312 for eleven seconds of discomfort. Negotiating is the highest hourly rate you will ever be paid.

Lesson 6 of 6 · A story

The eleven seconds Ada didn't fill

Ada was offered $10 an hour for weekend shop work. She said, "I was hoping for twelve," and then — this is the hard part — said nothing else. The silence lasted about eleven seconds. The manager said they could do eleven. Ada said yes, and worked out later that the silence had been worth about $500 over the year.

Why did saying nothing work?

Because most people fill a silence by arguing themselves down. Ada made her ask once, clearly, and let the other person answer it.

Lesson 6 of 6 · Try it

The usual mistake

Softening the ask on the way out — "…but I understand if not, honestly anything's fine." That sentence answers your own question for them.

The fix

State the number. Stop talking. The discomfort is the price, and it is measured in seconds.

Do this

Practise three sentences: "Is that your best price?", "What could you do if I took two?", and then say nothing.

Say this

"Ask, then stop talking. The silence after the question is where the discount lives."

🫙 Allowance calculator

The Four Jars

Move the sliders and watch what each jar becomes. Only the Grow jar is invested, so only Grow compounds — that is the whole reason the numbers separate.

Money in each week

Save20% · $3.00/week

$156 a year → $1,560 after 10 years

Spend30% · $4.50/week

$234 a year → $2,340 after 10 years

Give10% · $1.50/week

$78 a year → $780 after 10 years

Growinvested · 7%40% · $6.00/week

$312 a year → $4,612 after 10 years

Look ahead:

You put in

$7,800

You end up with

$9,292

Grew on its own

+$1,492

That extra $1,492 is money nobody worked for. It came from the Grow jar earning 7% a year on a balance that keeps getting bigger.

For parents: About $15 a week. Shift them onto a monthly payment this year — budgeting across four weeks is a much harder and more useful skill.

The 7% is a rough long-run stock market average used for illustration. Real returns vary, some years are negative, and nothing here is investment advice.

📖 The words they need this year

Gross pay: Your wage before anything is taken out.; Like: The $1,000 on the job advert.
Net pay: What actually reaches your account.; Like: $800 after 20% tax.
Inflation: Prices rising, so each dollar buys less.; Like: A ticket that was $8 now costs $14.
Risk: The chance you lose some or all of it.; Like: One stock can drop 50%; a savings account can't.
Return: What you earn on money you invested, as a percentage.; Like: $100 becoming $107 is a 7% return.
Brand: What people believe about you before you say anything.; Like: Why one trainer sells for triple another that's near-identical.

📜 This actually happened

The year money stopped working in Germany

In 1923 prices in Germany rose so fast that workers were paid twice a day so they could spend their wages before they lost value. People carried cash in suitcases and wheelbarrows. By November a loaf of bread cost hundreds of billions of marks, and the notes in people's savings — which had not been stolen, spent or lost — bought absolutely nothing.

Every one of those people had exactly as much money as before. Inflation does not take your money away; it takes away what your money does.

This week's mission

The Inflation Time Machine

Inflation stops being a word from the news and becomes a number about their own lifetime.

⏱️ 45 minutesInternet accessPaper

1Pick five things: a cinema ticket, a loaf of bread, petrol per litre, a game, a house in your area.
2Find the price for each in the year you were born.
3Write today's price next to it.
4Work out the percentage increase for each one.
5Find which rose fastest and which rose slowest, and write one sentence on why that might be.

🚀 Starter business

The Branded Product

"Same thing others sell — but people want mine."

What it costs to start

$20–40

What to charge

Price 30–50% above the unbranded version, and be able to say exactly what justifies the gap.

1Pick a product you can make consistently to the same standard every time.
2Give it a name, a look, and one clear promise you always keep.
3Sell ten unbranded, then ten branded, at different prices.
4Compare the profit on each batch.
5Ask three buyers why they chose it — and write down the words they use.

The business lesson underneath

Brand is a price premium you earn by being consistent. Consistency is the cost of entry.

Back

Ready?

7th Grade — Money & Business

Taxes, inflation, risk, and why a brand is worth more than a product.

Full screen — no distractions

For grown-ups: 7th Grade money

Twelve and thirteen year olds handle taxes and inflation well once shown with real receipts and real prices from the year they were born.

Four questions to ask this week

No printing, no materials, no lesson. Ask one at dinner and let the answer go wherever it goes — most of what children learn about money they overhear.

1"What's the difference between what a job advertises and what lands in your account?" Then look up a real payslip together.
2"List every subscription we pay for." Do it from memory first, then check the statement.
3"What did you not ask for this week because it felt awkward?"
4"How bad was this thing's worst year?" Ask it about any investment anybody mentions.

Three habits that matter at this age

The money lessons only stick if these are running underneath them.

Budget on take-home, never gross

The 20–30% gap is where most first-job budgets break. Doing the subtraction before accepting an offer is a lifelong habit.

Audit subscriptions twice a year

Multiply every monthly charge by twelve and re-decide. Most people find at least one they'd forgotten entirely.

Ask, then stay quiet

The single most valuable negotiating move is silence after the question. It's uncomfortable and it works.

By the end of 7th Grade

Tick these off through the year. If one is still open in June, that's the lesson to go back to.

Converts gross pay to take-home pay
Explains how inflation reduces the value of idle cash
Calculates the annual cost of any recurring charge
Ranks investments by risk and matches it to expected return
Recognises a no-risk-high-return promise as a scam signal
Asks for a better price and waits through the silence

Want the written practice too?

Everything on this page is free and always will be. If you want structured worksheets to go alongside it, the 7th Grade packs cover the whole year across maths, reading and writing, and study skills.

7th Grade Packs

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Frequently Asked Questions

What should a 7th Grade child understand about money?

The number you're paid is not the number you keep, and the money you keep loses value if it just sits there. Concretely: converts gross pay to take-home pay; explains how inflation reduces the value of idle cash; calculates the annual cost of any recurring charge. The six lessons on this page cover each of those, and the money check tells you which ones have landed.

How much allowance should a 7th Grade child get?

Around $15 a week is a reasonable starting point at ages 12–13. About $15 a week. Shift them onto a monthly payment this year — budgeting across four weeks is a much harder and more useful skill. The calculator on this page lets you try different amounts and splits.

What business can a 7th Grade child actually run?

The Branded Product: "Same thing others sell — but people want mine." Startup cost is $20–40. Brand is a price premium you earn by being consistent. Consistency is the cost of entry.

What is the most common money mistake 7th Grade children make?

Budgeting from the advertised salary. Every plan built on gross pay is out by hundreds of dollars a month before it starts. Only ever plan with take-home pay. When someone quotes a salary, immediately ask what it is after deductions. Each of the six lessons on this page names the trap for its own pillar and the smallest change that fixes it.

Is the 7th Grade money content on this page free?

Yes — all 6 lessons and their pictures, the 8-question check, the 6 stories, the 3 decision cards, the 4 worked money sums, the questions to ask at dinner, the vocabulary, the mission, the starter business, the allowance calculator, and the milestones are free with no signup. The 7th Grade printable packs in the shop are optional.

Does this work for a child who cannot read yet?

Every lesson on this page has a picture as well as words, so a younger sibling can follow along. If your child is not reading independently yet, start at the Pre-K or Kindergarten page instead — those are built to be spoken and pointed at.

7th Grade — Money & Business

7th Grade — Money & Business

For grown-ups: 7th Grade money

🍽️ Four questions to ask this week

Three habits that matter at this age

Budget on take-home, never gross

Audit subscriptions twice a year

Ask, then stay quiet

✅ By the end of 7th Grade

Want the written practice too?

Frequently Asked Questions

What should a 7th Grade child understand about money?

How much allowance should a 7th Grade child get?

What business can a 7th Grade child actually run?

What is the most common money mistake 7th Grade children make?

Is the 7th Grade money content on this page free?

Does this work for a child who cannot read yet?

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Four questions to ask this week

By the end of 7th Grade