The summer job is a rite of passage for America's youth and a perfect opportunity for teaching basic economic principles.
If you have children at home this summer, help them turn lemons into lemonade -- and lemonade into lessons.

Even young children can learn a lot about entrepreneurship and economics through a curbside lemonade stand. This came to mind when my wife and I were out for a neighborhood walk and we purchased cups of lemonade from two enterprising girls. We saw firsthand how a simple lemonade stand can be a great introduction to setting up a small business.
 

The first thing aspiring entrepreneurs need to figure out is where they will come up with the "start-up" capital needed to begin. Maybe they already have savings, or maybe they need a little help. If your young entrepreneurs choose to "apply" for a loan from the Bank of Mom and Dad, make an outline with them to show how the loan will be repaid.
 

And if another stand pops up across the street, teach your child about how to respond to competition. Would organic lemonade set you apart from the competition? Could you charge a higher price? Maybe. It's hard to know in advance what your consumers want.
 

Perhaps you should survey the neighborhood before making any recipe changes. Does lemonade sell better on hot days than on cloudy ones? These are fun lessons in supply and demand.
 

Young entrepreneurs learn that earning wealth through running a business is a good thing. Profits can be saved, spent or donated. The kids at the stand where we stopped were earning money for a charity.

Of course, young kids aren’t the only ones who can benefit from summer economics. Once they’ve outgrown the lemonade stand, a part-time summer job offers older youth much more than just the chance to earn some pocket money. 

The rising number of unemployed adults, coupled with the newly-raised minimum wage, meant fewer job opportunities for teens this summer. But the experience of applying for work is a lesson in itself -- teaching perseverance and the value of good references.

Young people who succeed in finding entry-level jobs in this competitive market learn important job skills -- how to show up on time, report to a boss, work on a team and meet crucial deadlines. On-the-job learning experiences set up young employees for future employment success.

Starting with the very first paycheck, it’s never too early to instill good financial habits and teach your children how to make and stick to a budget.  Note the difference between gross pay and net pay.  Help them figure out how much of their earnings they should save. Persuade them to pay their own way at the ice cream shop or county fair, or put the money away toward a future large purchase. They will undoubtedly find that success tastes sweeter when it’s earned.

Recent figures from the Commerce Department show that Americans are now saving 6.9 percent of their income – a marked improvement over last year. But with the recession as a reminder, you may want to emphasize the value of socking away even more for a rainy day. And don’t forget to encourage them to occasionally reward themselves for a job well done.

Summer is the perfect time for kids to learn life lessons not taught in school. Wise parents use their vacations as fun learning tools – and a way to pass on tips in personal finance and the entrepreneurial spirit.

Schug is a professor emeritus at  UW-Milwaukee.