As an adult, I often meet other adults who struggle from paycheck to paycheck. When I engage in conversation, I find that many times this struggle is the result of not being taught to budget as a child. I’d like to offer several suggestions on how you can help teach a young child both money management and budgeting:
1. Does your child enjoy buying lunch at school? Create a system/budget with them, where they are allowed to only buy 2 or 3 days per week. If they don’t buy that often, then make their budget for only 2 or 3 times per month. If you allow treats, allow money for them to buy a cookie or chocolate milk a few times. What this does is causes them to learn to make decisions with the money they have. They have to decide which meals they want to spend their allotment on. They have to decide which treat they want to purchase. They also learn that spending it all up front leaves them nothing the rest of the month. This is just a very simple exercise that even young children can learn from.
2. You can set up an allowance for your kids, making it clear what they are expected to buy for themselves. When you do this it teaches kids to save for the future and it teaches them that when they want something they will have to work and save for it, it won’t just come to them immediately upon wishing for it.
3. Take young children grocery shopping with you. Teach them how to comparison shop. Set the example of looking at prices of various brands and making comparisons between the large size and the smaller sizes. Spend time clipping coupons and using them. Again, this teaches children to look for savings and to invest time to save money.
4. Let children help with dinner. For example, give your child a reasonable budget to be in charge of dessert. Allow them to make the choice with their budget. Allow another child to be in charge of the main course and a third child to be in charge of side dishes. Young children begin to see how budgeting and shopping wisely can lead to savings.
These are all activities that can help you to teach your young children the value of money. As parents I think we all want our children to be financially independent as adults and these tips can help you get to that point.
~ ~ Audrey Okaneko is mom to two girls. She can be reached at audreyoka@cox.net or visited at http://www.todays-parent.com
