Teaching your child the basics of creating a budget is the first step in building the foundation for positive money skills in the future. Not sure where to begin? We’ve got you covered:
Start with cash
Children can see it, touch it and hold it in between their little fingers. That makes cash the perfect tool for any type of learner. When money is spent, it’s gone for good. Decide on a payday and an allowance you can afford, and you’re ready to start training.
Plan and chart
A successful budget requires tracking. For kids, a simple chart is a great visual tool. The chart doesn’t need to be fancy—it can be hand drawn or created on a computer.
Track and adjust the budget
When your child spends money, have them review the chart and track the Budget Expense against the Actual Expense (from the receipt). Then, ask your child whether he or she came in on budget, over budget or under budget for each item. When they count the money they have left, they can update their chart.