If you have kids then you know that managing money is not a phrase that always mixes well with the offspring. Encouraging your kids to budget their money this year will help them learn to be responsible for the future. Check out these ideas for helping your kids budget their money this year.
Set Up Three Savings Banks
Help your kids to understand the importance of saving as well as giving to others and spending wisely. Set up three savings banks for each child to use. One bank will be for saving, one for giving, and one for spending. This will allow them to put back some money, use their funds to help others and still have some for spending.
Choose percentages for each bank (for example, 10 percent to savings, 10 percent to giving, and the rest for spending) then each time the child receives some money, help them split it up into the three banks. Help your child choose a charity or worthy cause to which they can donate their “give” money.
Is your child saving up for something special? Perhaps they want to go to a new movie that will be coming out soon or they enjoy hitting the yard sales with you. Discuss their goals about saving money and help them determine what they want to save for.
Remind them of their goals when they want to spend the money they have. If they are saving money for yard sales on the weekend but see a toy in the store they want, they will need to make a decision: If they buy the toy, they won’t have money for yard sales.
Use Wall Charts
Use wall charts for each child to encourage them to stay on track with their money. The goal should be to save and spend wisely. Create a chart that tracks saving so that when a certain amount is saved, a goal is met and a reward given. A chart can help provide a visual of the money and can provide motivation for your child to be responsible with their money.
Practice Through Play
Depending upon the age of your child or children, you may want to help them practice budgeting by playing. Set up a pretend store and give each child some play money. If you have a toy cash register use it, otherwise a calculator will work. Create a store shelf with assorted items “for sale.” Put price tags on everything and help the kids make shopping lists based upon their budget.
Play this several times to help them figure out how to shop with a budget and how to make choices about what to buy and what to skip.
Start early with teaching your child about finances. The sooner they can get a handle on handling their money, the better off they will be as they grow older.
How do you encourage your children to budget throughout the year?