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.