This article appeared in the Fall 2023 magazine, Growing Up.
Fifth graders flock to recess as they make their way toward their fellow entrepreneur at Northstar Academy in Redwood City.
Gannon Smith, a current fifth grader at Northstar Academy, detailed how, as a ten-year-old boy, he was able to create a small successful business within the economy of his fifth-grade class. According to the U.S. White House, two-thirds of America’s economy is consumption-based. With consumerism’s influence on the economy, it also leaves its mark on the individuals participating in such. The influence on kids presents itself through numerous results when searching up “how to make money as a kid” on Google. Results appear from Nerd-Wallet, Self-Sufficient Kids, WikiHow, and Credit.com. With so many ideas put out on how kids can make money, the account of one young entrepreneur illustrates a tangible example of children and their finances.
“I sold Prime and candy,” Smith recounted. “That’s how I made money.”
Smith capitalized on influencer Logan Paul and internet personality KSI’s widely popular sports drink, Prime. The product appeals largely to the age group of “tweens,” according to Nicole Gull Mcelroy’s article “The Ultra-Viral Rise of Prime, the Internet’s Favorite Sports Drink.” Considering this, Smith chose a strategic item for his business.
“[I made] 20 dollars every time I sold everything,” Smith said. “In profit, I probably made about 80–90 dollars.”
It remained unclear whether Smith referred to net or gross profit. Net profit refers to the amount of money made after deducting expenses while gross profit refers to the total money made, regardless of expenses involved in the transactions.
“I chose to [start my business] because I wanted to make some money and buy the stuff I wanted,” Smith said. “I wanted to buy one specific hat and I managed to save up enough money for a hat.”
In terms of permissions to open shop at school, the rules were a bit muddled as Smith received some backlash from the former principal, Sara Shackel. Smith explained the other factors that led to the end of his business.
“I just ran out of stuff and I didn’t have enough money to buy the things I was selling,” Smith said. “I just stopped selling stuff.”
Smith’s parents initially held no qualms with his business plan.
“My plan was to convince my parents to let me do it,” Smith said. “Then I told most of the kids that are in our grade and then they brought money to school.”
While his business ultimately had to come to an end due to concerns from the school, Smith acknowledged the experience he gained and even mentioned the possibility of wanting to start his own business or company in the future.
“It taught me how to make money and the struggles when making money,” Smith said.
