Pros:
Very Flexible: Since you will be the employer, you can set their schedule around schoolwork and other responsibilities. In addition, you can make changes to their schedule if you need to.
Great Introductory Job: If your child hasn't held a job yet, working for you will give them a good learning experience in a protective environment.
Various Ages: Your younger children can stuff envelopes, while older children can do more advanced work. You'll be able to expand the responsibilities as your children grow and mature.
Your Child Can Stay at Home: Since your child will work for you, you'll always know where he is and be able to keep an eye on him.
Leads to Understanding: Your child will learn about your business. They'll probably be proud of the family business and be able to relate when you talk about work. This understanding will help in other discussions as you teach your child about money.
Cons:
Variability: Depending on your line of work, you may not have enough work to keep your child busy consistently.
Limited for Children: Of course, not everyone runs their own business, or has the option to allow your child to work for you. If you don't, but like the idea, you may want to ask friends, neighbors, or relatives you know who might want to hire some additional help.
Working for Parents can Create Conflict: Your child will not treat you the same as they would another boss. If they are grounded for something unrelated, they may have a hard time with the concept of separating work. Try to be understanding when they view that it's not fair to have a parent for a boss.
Conflicting Pay: Will you pay your child the going rate for the work they do? At younger ages, probably not.
What Kids Learn About Money:
Negotiations: Working for the family will give your child a direct line of communication when they want to talk. Give them the opportunity to discuss pay rates with you. Introduce him to negotiations to settle on a fair rate.
Teamwork over Money: One of the most valuable lessons a family business teaches is working together. Give your child access to see the success and failures of the business. That will be a stronger lesson than their individual paycheck.
Entrepreneurial Spirit: Working for you will give your child an up close look at the entrepreneurial world. This is a powerful teaching tool that could shape your child's career goals and aspirations.
