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Budgeting Lessons for Kids |
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Budgeting as we all know is a very important part of any person’s life; that is unless you have tons and tons of money and can afford to buy just about anything. For the rest of the people who are less fortunate budgeting remains a way of life. Most of us grow up with a limited amount of pocket money to spend. We spend the amount we get and then if we want more we plead for it and the lucky few gets more. Eventually we grow up and come into adult life and then we realize a whole new world were we need to do all kinds of things to fend for ourselves. Then we learn budgeting techniques mostly through experience. But what if you could teach your kid to budget early on? Then he or she will get a head start and will not be left out hanging when they step out into the world.
How can we teach a kid to budget? You might ask. Well it’s the same way every one learns how to budget, through experience. Normally most parents give their children pocket money on a daily basis. So we start there. Give your child his or her pocket money on a weekly basis or a monthly basis (I personally recommend the weekly basis since your child is still learning). Open a savings account for them too, or if that is too fancy just give them a jug or a bottle where they can stash some money in. The idea behind all this is to give your child the opportunity to spend and save according to a budget.
Kids and adults alike tend to spend money when they have it and then they scrap out until they get some cash again. This is the habit that we should try and stop. When your kids have a bigger amount at the start of the week then they will have to resist spending it all and try to spread it through out the week. The trick here is not to give any more money during that week. If you give more money then the concept is broken.
Teach them how they should spend on things they need first and then if they have anything left they could spend it in any way they like. Make sure that they save a fixed amount each time they get some cash. Kids love the idea of getting some cash and then buying their favorite toys or clothes or any other thing that they might want to have. So teach them that by saving money they could buy what they want. Use small tricks like if say your child saves some amount during a week or a given period of time, double up on that amount. Say if you child spends his or her money wisely increase the amount you hand out. Small tricks like this will really get your young ones focused on spending their money in a proper manner.
Teaching you child to budget and save will get them ready for the future. They will learn things early on and will be able to use that knowledge and experience when they grow up. Help you child become a better person and live a more balanced and comfortable life. |
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