Teaching your children to be smart with their money is important. You want to start teaching the fundamentals to your kids from a young age. They will know how to handle it more as they grow, which also means they won't have as many money problems when they are older. Read on for tips and pointers on how to keep track of money and to establish budgets for kids.
An important rule to teach your kids, no matter the age, is that money comes in exchange from working. Budgeting Wizard, Dave Ramsey said this, "If your kids don't work they won't get paid." Teaching this early on will enforce a good work ethic in your children as they will work hard to make that money! It's an important lesson that will teach them that money is given to those who work for it.
Your kids are watching you. Make sure you are being a great role model with your budget too. Are you cutting coupons to save extra money? Do you use the envelope system of spending, saving, and giving? If so, your children will see it.
Don't think of the money as an allowance, think of it as a commission. Your child works and they get paid. But, if they don't work, they wont be paid. Give the accountability to the child and watch how they work hard to earn their weekly commission.
It is important to help your little ones see their money grow. One really cool idea is to use a see through money jug.
You know those large 32 oz plastic jugs that hold cheese puffs? Once your family empties one, clean it out and set it in a place where your child will see it daily. Then, have your kids fill the bucket whenever they make some money. This will allow them to see their money grow in front of their very own eyes.
Tell them that when their money jug fills up that they can pick what they want to do with the money.
Either:
1. Save the money and get something really awesome later.
2. You can take them shopping to buy a fun toy.
More tips for budgets for kids...
