How to Help Your Children Build Their First Budget
Establish an allowance., Talk about essential spending., Show them how much items they want cost., Help them be creative with budgeting.
Step-by-Step Guide
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Step 1: Establish an allowance.
If you want children to budget, you need to give them some money to work with.
Establish an allowance for each child.
Many parents decide to give their child one dollar for every year they've been alive.
For example, your five year-old would earn $5 a week.
However, there are no strict rules.
You could agree on a set amount for all your children, like giving all your kids $10 each week.Make sure you set rules regarding allowance.
Let your kids know when they can expect to receive their money each week.
You can also make kids earn their allowance by doing chores. -
Step 2: Talk about essential spending.
If you want your children to figure out how to budget, let them know what essential spending is.
Say something like, "The first step to forming a budget is identifying where you need to spend money.
This is stuff like bills and groceries." From there, you can help your child decide what their essential expenses are.You can use your own budget as an example, as children are unlikely to have many essential expenses.
Explain to them how much money you personally must set aside each week for things like food and bills.
From there, you can ask your child where they need to spend money.
Ask them something like, "Is there anything you need every week?" Maybe your child always spends a dollar on a drink during lunch.
Have your child subtract one dollar from their allowance. , As children decide how to spend their allowance, talk to them about cost.
Ask about the kinds of items they're hoping to buy and let them know the exact price.
For example, if your child wants to buy a set of toy cars, say something like, "Those are $5.
That's about half your allowance."Do this each time you're out and your child sees something.
Over time, they will learn to remember their personal budget before buying an item.
For example, your child may want to buy a toy at the store, but realize they will not have the money for a drink at lunch the next day. , Children may be frustrated at first with budgeting.
They may want to be able to spend money more freely and get frustrated when money runs out.
Teach them how to be creative and get by on less.Teach your child how to make due with what they have.
For example, your child wants to do a specific craft project that calls for markers and poster board.
You have markers, but no poster board, and your child agreed to only spend $5 each week on craft supplies.
Tell your child they could substitute poster board for cardboard and save their money.
This will save some of their craft budget for more unusual supplies that would be hard to find a substitute for. -
Step 3: Show them how much items they want cost.
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Step 4: Help them be creative with budgeting.
Detailed Guide
If you want children to budget, you need to give them some money to work with.
Establish an allowance for each child.
Many parents decide to give their child one dollar for every year they've been alive.
For example, your five year-old would earn $5 a week.
However, there are no strict rules.
You could agree on a set amount for all your children, like giving all your kids $10 each week.Make sure you set rules regarding allowance.
Let your kids know when they can expect to receive their money each week.
You can also make kids earn their allowance by doing chores.
If you want your children to figure out how to budget, let them know what essential spending is.
Say something like, "The first step to forming a budget is identifying where you need to spend money.
This is stuff like bills and groceries." From there, you can help your child decide what their essential expenses are.You can use your own budget as an example, as children are unlikely to have many essential expenses.
Explain to them how much money you personally must set aside each week for things like food and bills.
From there, you can ask your child where they need to spend money.
Ask them something like, "Is there anything you need every week?" Maybe your child always spends a dollar on a drink during lunch.
Have your child subtract one dollar from their allowance. , As children decide how to spend their allowance, talk to them about cost.
Ask about the kinds of items they're hoping to buy and let them know the exact price.
For example, if your child wants to buy a set of toy cars, say something like, "Those are $5.
That's about half your allowance."Do this each time you're out and your child sees something.
Over time, they will learn to remember their personal budget before buying an item.
For example, your child may want to buy a toy at the store, but realize they will not have the money for a drink at lunch the next day. , Children may be frustrated at first with budgeting.
They may want to be able to spend money more freely and get frustrated when money runs out.
Teach them how to be creative and get by on less.Teach your child how to make due with what they have.
For example, your child wants to do a specific craft project that calls for markers and poster board.
You have markers, but no poster board, and your child agreed to only spend $5 each week on craft supplies.
Tell your child they could substitute poster board for cardboard and save their money.
This will save some of their craft budget for more unusual supplies that would be hard to find a substitute for.
About the Author
Amanda Wilson
A passionate writer with expertise in DIY projects topics. Loves sharing practical knowledge.
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