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Teaching children how to budget

The pig never had enough unless you learn to budget.
The pig never had enough unless you learn to budget.Importance of Budgeting

Whether you are young or old there is one thing that remains true concerning money, there is never enough. If you have ten dollars, you need twenty, it's a bit like Murphy's Law. It is important to teach children the importance of budgeting at an early age so that they will learn the significance of keeping spending under control.

There are a few tricks to help children learn to budget on an easy kid friendly basis.

1. Keep track of what you spend. Write down everything you spend your money on for a month. At the end of the month go back through your list and decide if what you spent your money on was worth it. Did you over spend on eating out for lunch at school? Did you spend too much on clothes, or not enough? Did you have enough money when it was time to go to the movies with friends? Here is where you can adjust your budget for the next month. Eventually this will become easy and you will know how to save, and how to spend, wisely.

2.Decide on a set amount of money to save each month out of allowance, or from a job. The typical amount to save is half. Put half on one piggy bank to save, and the other half in another for expenses. This way you have a bank of money for future expenses, and a bank for things you need right now.

3. Get a job. If your allowance isn't enough, because it will never be enough, or your parents can not afford to give you hand outs every time you want to go to the movies, get a job. There are several things you can do from babysitting to mowing lawns. Sometimes a parent will be more willing to pay for specific jobs then they would be to just give out an allowance and hope to get help in return.

4. Be responsible for some of your own expenses. Being responsible now for some of your own activities and expenses will teach you responsibility for the future. Music lessons, school, lunch, extra curricular activities are expensive and add up quickly. Take some responsibility to pay for a portion of these things. This responsibility will also leave you feeling rewarded and accomplished.

When children learn the ability to be responsible and budget at a young age, you are setting them on a path to be successful independent adults. Teaching them to somehow have enough, in a world where there is never enough.

More Info: Local bank , Weatherford Entrepreneurs

Comments

  • Jane 4 years ago

    Fantastic article!!! This is indeed an incredibly important thing for every adult. Part of the reason our country got into the housing fiasco is because people were just spending and were in over their heads and didn't budget. They had no concept of having to have the money to be able to make the payments. So, teaching children when they are young certainly can help. Thanks again!

  • Julia Tidd (FW Christian Living) 4 years ago

    I agree. It is better to learn this at a younger age when the stakes aren't so high.

  • Doug 4 years ago

    Yup! Right on target - again. Thanx

  • Anonymous 1 year ago

    Great article. Teaching my kids to budget is so important. I am been giving my kids allowance since the age of 5 and believe it is very important to teaching them how to budget. I find many tools online to manage and track their allowance and to teach them. One of my kids is 14 and we use http://kidsca.sh to allow them to manage their allowance. I can track any and all activity. it is very convenient for both of us and we can actually talk about money without causing a fight