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How to invest for your child

Dear RCS Leaderchat,

I have been helping my little ones save some money in their piggy bank through this COVID period. It’s not a lot of money but I fear that a crisis might arise and the little savings are used. A thought has struck me to look for small business ideas for kids.

What is out of question is letting them vend items on the streets.  I believe there could be some decent options that could help sharpen the business acumen of these little ones.

One is 5 and another is 7. Come to think of it. Would this be child labor?

They counted their savings and it totaled to Ugx 600,000. They earned this money through rewards for helping out at home.

Look forward to reading from you.

Leaderchat Member.


Dear Leaderchat Member

Good morning

Thank you for the Initiative and the values of saving and investment you are teaching the young ones at such a tender age, it is the best time to start imparting important values. 

Please note; 

Under the Uganda Employment Act No 6 of 2006 specifically section 32;

  1. A child under twelve years shall not be employed in any business, undertaking or workplace. 
  2. When the child exceeds twelve you can start engaging them in light work on the following conditions;
  3. a) Carried out under the supervision of an adult (18 years and above)
  4. b) Does not disrupt their Education 
  5. c) The work is not injurious to the health or physical well-being 
  6. d) The work is not carried out between 7pm and 7am. 


At ages 5 and 7 the children should not be directly involved in business/ work directly but I believe indirectly through observing you as their agent a parent can show the children how to present a value that would solve a community problem and teach them that if they did that they would profit and their pig bank would become bigger. 

For example you could drive with them to the market and buy fruits, come home and make juice package it with them and distribute at a neighborhood supermarket on a Saturday morning and later show them how much of their money you invested and how much profit your made from quenching peoples thirst. 

Or buy plain face masks, drive to Nasser road and have them printed with children superhero characters and sale them to P7 pupils at your neighborhood school as an agent of the children as they observe, again show them the problem you are solving and the profit you are making for them. 

When they are above 12 years they can start taking on some light tasks such as production and packing of Juice under your supervision or selling of Masks within their schools under supervision of their teacher. 

I hope you find this helpful, do not hesitate to contact me in case you need more clarification.  

Kind Regards



Dear Leader chat Member,

It’s a pleasure always hearing from you. With regrets, I found this lying in my drafts knowing I had shared with you earlier on reading your mail. Hoping it’s not too late; please see below my quick contribution.

These nuggets are quite thought provoking and a taste of our characters & what values, more so legacy we intend to pass on to our children as parents and also as leaders in different spheres.

Back to your query, first & foremost, imparting such ideas & enabling our children start developing interest and business acumen is rather innovative & not child labor. Secondly, it’s a value well taught as home than at any high-level business school ~ rem charity begins at home?

That said, I personally believe you are teaching your 5 & 7 yr olds a great value, i.e. the value of Money & its purpose that if continued, they will grow to appreciate, understand & attach value as adult. You see, most of the issues we have in society today is due to lack of financial understanding or literacy, the value attached to money which is clearly demonstrated by one’s poor stewardship of resources, be it finance /non-finance.

My experience is that when we teach our kids to Save and Invest as opposed to only save & save; you’re allowing their minds think outside the box even at a tender age. Financial stewardship & non- impulsive (i.e. planned) investment is one on the greatest skills & tools to impart in our children – this Centennial Generation of today; if we are to avert this two-way cancer called greed & corruption.

I would recommend two angles from you or parents to build both financial gains & life-long skills:

  1. Build their life skills: in
  2. a) Crocheting (start small)
  3. b) Baking (start with muffins)
  4. c) Arts &crafts skills.
  5. d) Card making for friend’s birthdays
  6. e) Backyard vegetation gardening.
  7. f) Juice & smoothie making for sell. 
  8. h) Rearing rabbits or any child friendly animals (that’s has good ROI & not high-maintenance).


  1. Kids Own Investments:
  2. a) 5 or 10yr Life or Education insurance.
  3. b) Assess the opportunities and invest or buy Shares, Treasury Bills, Treasury Bonds or Unit Trusts.
  4. c) Start up a kids investment clubs with you best friends (must be like-minded & people who share your vision or goals).
  5. d) Open Fixed Deposits bonus-kids bank accounts to bank earning from life-skill business ventures undertaken.
  6. e) Start a simple Vegetable Backyard gardening that family & neighbors & friends could buy produce from.
  7. f) Juicing & Ice cream making venture at schoolmates BD parties.
  8. G) Book club, with rotations reading e.g. money cure by Barbara Katende.

NB: Also invest in Ms. Barbara Katende’s financial literacy program one I have found very appealing with customized products for kids as well.

Above all, involve your kids in this roadmap of decision making. Let them into the brainstorm process with you as their passions or interests come alive. Rem to be patient with them every step of the way!

These are some few tips I could quickly for now. Otherwise, these could be expounded.

Bless you all,

Goldy Oboma

Dear RCS Leaderchat

I do not believe this is child labor. You are teaching them how to be responsible and care for one another through mirroring chores at home. What I suggest is you put their money into savings investment with both their names and show them every month the interest earned from it. It might be difficult to explain, but you can try “lending to government” and they pay us back with an interest because they used their money.

UAP, Sanlam and Xeno have such investment options with approximately 10% monthly

Let me know if i added value to your question.



Of course it’s. This encourages them to work and to be faithful in what they do.


Well there is what UAP insurance here calls the umbrella fund where you invest a given amount of money either once or monthly and it keeps on earning for you interest monthly. You could try that with you children’s finances.


Hello RCS Leaderchat Member,

Children below 18 are limited to what they can profitably involve themselves in due to child labour laws. Yet as parents we should nurture our kids’ entrepreneurial tendencies. 

Let me do some background checking before I commit advice on this

Dr. Stephen Mung’oma

Dear RCS Leaderchat,

Thank you for sharing the story. It is really important to teach children about saving. It is even more important to teach them about investing and having money work for you instead of you working for money.

My suggestion is that you begin teaching them forex trading and trading of stocks, indices, metals and commodities. I mean use their money to trade and then in simple language begin explaining to them that their money is making money! As they grow up, they will learn to do it themselves.

I recently came across a company that is teaching forex trading online and it is affordable. You could join it and learn from the back office and when you are doing it, your children will learn. If interested, or if the idea strikes you as something you can do, let me know and I will get you started with that company.


Dr. Stephen Mung’oma

Woow this is such an interesting thing am happy u HV instilled such a saving culture at that early age.To me I think starting up something the kids enjoy doing would be better so that they will eventually be proud of that business.

  1. Making snacks like popcorns,
  2. Juice making 
  3. Baby’s wear shop.

 I hope this will help

That’s way too much money. A friend is engaging them in making simple confectionaries that they sale to the children in their neighborhood. She tells me that they have learnt how to make cookies and an additional skill in marketing them in the estates

Anthony Oleja Enyogu

Dear RCS Leaderchat

Good morning.  It is great to see your children starting to learn the financial management lessons early. I’m no expert on kidpreneurs but I think the business can be based on something they are interested in e.g. sports – hiring our sports equipment, food – snacks, lawn work, pet sitting, babysitting, laundry service, car wash etc.  You can also check out various resources online for ideas and validate by getting customer information in the areas where the product/service will be consumed.



Buy them local chicken and they start tearing just in case you have where to keep them. 

You could also buy broilers, the ones for two months and rear them for another three months. The one you bought at 10k may be sold at 30-40k.

With help from their mother or house help they can bake small delicious cakes.



Hello  RCS Leaderchat Member

Well done. 

To me COVID pandemic was a blessing in disguise.

As parents we had forgotten how our parents groomed, nurtured, mentored usinformally but we came out responsible citizens. We tend to adopt all what the white man brings to us such as child labour. 

Today parents are working hard to keep children at school, couching, avail TV, playStations to keep them engaged. They say “bend the metal when it’s still hot”

Uganda has the highest youth numbers worldwide and youth unemployment. 

Please go on with the children investments… Mine are doing this.. Two campusers  one is doing local chicken,  another rabbits and one who is 11 is growing strawberry  

Hope that you have picked some ideas 



Hello RCS Leaderchat,

Reference to your email, my take is, it is not child Labour, however you are engaging them and teaching them how to make money.

I suggest you continue with your plan.

Thank you


What I may quickly think about is making paper bags or any form of baking or making paper toys from homemade materials, or just making sweets (this may require a little more). But it’s the most profitable of all. I have seen in India and China people making sweets from home from simple ingredients at home. 

For me mine are making protein bars made out of chocolate and chocolate sweets. It work and there is no such product locally made on the market. 

I hope my ideas help


Dear RCS Leaderchat Member, 

Thanks for your efforts to let start to learn how to get money, but note that child labor is at times invisible or visible.

Open them small merchandise home on a small table to sell if your home or homestead is easily accessible to customers, even your neighbors are customers.

Note: these ages are not supposed to go out and do businesses but make them learn light skills for future business..  I still wonder how they earned the 600k…might be alot of hard labor they were subjected to..

Peter Odama

Hi RCS Leaderchat Member,

Well done on that super brilliant initiative, this sounds parent-child empowerment scheme which most of us parents lack today! My advice is the 5&7 years old seems so early for a business, may be if you can use some small amount of the money and buy each their favorites for them to get a feel of saving and may be motivated, then continue saving with them up to may be 10 years. If you look at their Av. Monthly saving since Covid started in March, its over shs85,000. When you consider the elder kid @10years, it will be another 38months of savings giving you a quantum of over shs 3.25m which i believe by then it’s the right time to start engaging a kid into business minds and by then you would tell what each is passionate about that’s what you base on to choose the right business for each and support them.

That’s my personal opinion



In my opinion you can introduce them to agriculture by getting them some boxes and help them grow tomatoes or sweet pepper then find a supermarket or market nearby and go along with the harvest in a good pack and see how much you can generate (100,000 maximum)

The crops may die but the lesson will be about risk management 

If it doesn’t work out first time (do it again with the lessons learned with a view to improve the results)

First time u can spend 20K seeds cost 5K and a bucket with soil maybe 5K also or a jerrycan and put holes at the bottom and sides. 

So with 100K u have a chance to do the experiment 5 times if it works out they can always continue with the venture only reinvesting the capital and taking the profit to their fixed income investment 

The rest help them invest in Government Treasury Bonds – where they can see what is happening to their money daily.

Diversification is a good lesson to help them appreciate different investment options 

You can hit me up on 0704883342 if you get stuck with the AlTX part.

Congratulations on preparing the next generation for the uncertain times.

You have done very well.

Oscar Ofumbi ACSI


Quite something to think about

The years are young, not sure our systems are developed to accommodate that age in business without exploitation

I wish to hear other business options 

Good luck


I am very happy for you but there are things which are never on the same level. During COVID period if you were able to save just know not all people had the same ability as you so let’s try to be realistic 

Best regards 

Jasper Nelson Onono

Hi RCS Leaderchat Member,

Hoping you are well.

Your actions do not tantamount to child labour in any way. These lessons stand out for me..

  1. Children learning to take responsibility around the home and thus from an early age appreciating the importance of participation and contribution to a greater whole
  2. Children becoming increasingly aware and accountable for the quality (acceptable standards) and frequency of how and when they participate
  3. Appreciation of reward and later this understanding can be transferred to compensation (above 18 yrs of age)
  4. Increased awareness of saving and wise investment….deferring current satisfaction in favour of future gain..The power of multiplication 
  5. Parental mentoring and coaching highlighted strongly
  6. Institution of a strong value system and Inculcation of a great progressive and outward looking culture
  7. Building confidence, self-initiative, and hopefully critical thinking capabilities 
  8. Strengthening trust, bonding levels, and reducing the power distance between parent and child

Look around….families that focus on the next generations tend to prosper long term…those that look at the here and now tend to enjoy short term prosperity and then fizzle off….😬

Much more still to say……but off now to conquer my day. My thoughts…..

Your children are blessed to have you 🙂



Wow..! That is remarkable. You only need to guard that in future if there is no tip they do refuse to participate in work at home.

They are abit young and selling could become a challenge but you could open a fixed deposit Account for them e.g. for 500,000/ and then use balance to contribute towards learning of a skill, eg. Learning guitar, downloading an app which teaches typing, etc



Hi RCS Leaderchat Member,

I say you nurture one mindset at a time. Right now, it is saving. Let them understand the rewards of saving. Do something remarkable for them, or better yet, let them do/buy something they like. 

The second lesson when they’re rather mature enough would be getting to the next phase of saving which is investing. For now, Let them be rewarded for the little step they’ve taken. 



Good work ,

I would recommend that since these kids are young and they have school ahead of them the only solutions for other business ideas they would engage them selves into that would not affect their studies an are less risky is for you to buy for them government bonds and unit trusts from the different investment firms we have hea in Uganda that include;

UAP, XENO, Equity, ICEA among others in the region.


Naiga Caroline 

Food sector is an industry with great potential for children investment. They can start by making crisps, nuns, cakes, muffins and sell them to shops, neighbors etc.

Or make crafts like bags, shoes etc.

My young siblings have been doing so at home. And it worked out.

Hope this can be of any help to you!!


Dear RCS Leaderchat Member,

Great that they were able to save. Have you picked what ideas they have themselves???

Isaac Kiyingi

Hi RCS Leaderchat Member,

I hope this email finds you well,

Trust me this is the best email I ever received from you. It’s a great lesson and motivational.

My opinion, it’s not child labor for kids to work, its entrepreneurship and development, but don’t them to vend on streets, instead you could create for them a small business in one place. For example a small grocery point (omudaal) for yellow bananas. Buy them a small deep freezer (400-450k) and they start making Sweet ice or else, open up a bank account for them and deposit it(keep adding til they grow.)

I am impressed

hope to hear from you soon.


Hello RCS Leaderchat Member,

I hope members will advise but I also wish you consider securing their education in that after everything being done they’ll have the right education to grow their business even bigger. They’ll need education to sustain the business and also to know how to deal with marketing and so on. You also your life will be secured in that in case you get incapacitated God forbid, you will have money to help you with daily expenses and also protect their dreams. If you find it interesting we can discuss more about this saving plan from Prudential Assurance Uganda in person or via call. I’ll be waiting for your feedback.

Best Regards,


Hi RCS Leaderchat Member,

Quickly off head, What if you top up for the lads and they buy something like a small bouncing castle that they can hire out to their friends on small private  gatherings at say just 100k. Not a lot of returns but they can enjoy this too as they make an extra bit money.

Otherwise, it’s great you made lemonade out of this Covid mayhem. 

Well done!

Y-SAVE has children account options, if you intend to introduce them to paper asset, where their money does work for them earning them decent incomes without vending items on the streets. 

Basically, there several paper asset options on the market including Unit Trusts where they can recall their investments at short notice to re-invest elsewhere with better returns on their investments.


Good morning RCS Leaderchat Member,

Thanks for the initiative of making the kids develop savings culture this early.

You may consider putting their money in a small SACCO you are in to enable them earn some money, though this option may not have big returns and they may not have the feel of their investment.

Another option can be a small farm project (poultry, one or two goats, vegetable growing) depending on the interest, this allows them to know that they own those 10, 20 birds, the vegetable garden etc.

My thoughts


This is great thing for kids. We have our 10 year (girl) and 12 year(boy) old who did the same in the past and when their monies accumulated, we bought the boy a bike. Now it depends on where you are located and the environment, for us The boy has been able to hire out his bike to other boys and charges some money 500ugsh on a daily for that and has been able to make averagely 4000sh daily when it is used. And continues to save some of that while uses some to make the bike repairs as needed.  

The girl learnt to make small handmade bags that she sells at 3000 each. This has kept them busy during this period. The boy is now back to school since he is a candidate. We cannot hire the bike for him and are now also thinking of investing opportunities for his saving.


Hello RCS Leaderchat Member,

I like your perception towards enforcing savings culture for the young ones, However, such young kids are too young for the street business especially in uganda given the disturbance from kcca, kindly link them to some kind of work that they can do from home and only move out for deliveries, like making washing soaps, detergents, chalks, candlestick these are items you can do from home and even your family and neighbours can be the first customers.




RCS Leaderchat