Budgeting is a hard term for a child to understand. They often times aren’t thinking about how much an item costs, or what’s a good deal. This is why children sometimes don’t understand why they can’t have everything they point their fingers at.
But just because they naturally don’t understand that doesn’t mean you can’t start to teach your kids to budget! You can start educating your kids on money and ways to manage money wisely with these great tips:
Introducing the Budget
First off, introduce to your children what budgeting is. Describe what it means and what your goals are. In very general terms, describe your budget to them. The younger they are, the simpler the explanation can be. It is important to help them understand the basics when you teach your kids to buget.
Sit down with them and layout a simple family budget template with the necessities you have to pay for, like groceries, utilities, etc. Explain the benefits of budgeting and why it’s important. Try and make them excited about budgeting and how it can be very rewarding.
Don’t Be a One-Man-Band
The hardest thing about keeping a budget for the family is inspiring others to do it too. If you are the only member of the family keeping track of a budget, it can cause it to be more difficult.
It’s important that the family is aware of the budget, so they can strive to keep it. They can also be a great support team when you see that expensive item you don’t need.
The Principles of Saving
Explain to your kids how saving is very rewarding. Motivate them to help save for their own items and help them find ways to earn money to do so.
You’d be surprised what your kids are willing to do when you show them it’s possible to save money for special things they want. This well help them understand the principle of saving and how hard work pays off! Motivating them is very important when teaching budgeting for kids.
Reward Their Efforts
Just like everyone, children need encouragement for their efforts. You may get a bonus at work or a raise if you are successful. Likewise, you can give your child a “bonus” or a “raise” for their hard efforts doing extra chores.
Motivate your kids when you give them a good enough reason and show them it is possible. If you always planned on getting them that new bike, or taking the kids to that new water park, then they’ll understand why budgeting is important.
Even if the smallest children don’t understand yet, the older ones can help them get excited too.
We hope you have enjoyed our tips to help teach your kids to budget. Good luck!