Teaching Kids How to Budget

Posted on January 17, 2008. Filed under: Family Life, Frugal Living | Tags: , , , |

Thursday is about Frugal Living

Photo by r-z

coins2.jpgThe lessons I’ve learned from frugal living will be wasted if I don’t teach these principles to my children. Right now, I am trying to teach my kids about managing money and just started an experiment. I put money into an account for them whenever I get paid, and that is the money they can use for buying clothes and entertainment. If they want to save the money they can. If they want to spend it they can. However, when they want to buy clothes or go out and do things, the money comes from that account. If there is no money, there is no going out.

I am doing this with my older daughters who are ages 14 and 15. I figure at that age, they should be able to manage their money and learn how to keep a budget. When I first told them about this, they were thrilled. I decided to give them $75 every time I get paid (that’s twice per month), and they agreed that was a lot of money for them. I came up with that amount because I usually take them shopping for clothes twice per year, and spend about $500 each time. I also added in the costs of getting their hair done, and going to the movies and came out with an average of $150 per month.

Now when they ask me if they can buy something or go somewhere, I can simply say “Yes, if you have the money for it in your account”. This has really made things easier for me to manage. I have the money that is going into their accounts set aside in my budget. When they want to make a purchase, I don’t have to worry about what it costs–now that’s for them to figure out.

One of my daughters has learned how to save her money and now has a good amount saved up. The other spends it as soon as it comes in. She’s still learning, as are many adults.

Anne

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  • About

    Musings on how a disorganized woman with a full time job, three kids and a real need to relax is trying to make life simple.

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