Math never tasted so sweet.

June 23, 2009 at 4:44 pm Leave a comment

Hey Phoenix,

One of the skills that kids develop when they are running their lemonade stands is math. Around here in Houston educators and parents are oft to say that there is no job in the world that doesn’t involve using math so you mine as well learn it the right way the first time. Well Lemonade Day teaches kids math through budgeting for their business, price points, expenses, calculating their profit, price per glass, profit per glass, their gross vs. net income, percentage to give to charities (if they so choose) how much to pay their employees (if they hire any), calculating their breakeven point, their total repayment to their lender with interest, how to calculate interest… the list can go on and on if you wanted it to.

What got me thinking on that was a spreadsheet I received that had a little bit of the numbers compiled from our “Most Profitable Stand” contest that we run every year at the end of the Lemonade Day program. To give an example from the Lemonade Day program 2009 had 27,000 registered stands with ~2m cups sold in Houston.  Our most profitable stand made $214 in 2009. The average kid made $97.02 in profit with an average cost of $0.77 per cup sold.

If at the end of the day the kid were to sit down and calculate all of these things out by themselves or with their caring adult (depending on their level of math literacy) they would gain a lot of practical math knowledge. Another thing to remember is that in the Lemonade Day program the kids keep 100% of their net profits to use as they see fit. The average stand was open for 4.1 hours, $23.66 an hour isn’t a bad rate of pay for when you are still in middle school. If they were to keep it up, 4.1 hours a day, two days a week (weekends) for 48 weeks a year they will walk away with ~$9,000 net for the year.

Not bad for a 12 year old.

-Kris

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Entry filed under: Phoenix.

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