How to teach kids about money and budgeting.
Teach your kids how to save money early. Discover helpful tips about how to teach kids budgeting skills.
If you want to be good at something, it’s important to start learning early. The same goes for money and budgeting. Children might not be that interested in budgets, but the valuable lessons are worth it. These tips can help you teach kids budgeting.
Let them earn their money.
Start by having your child do chores for their weekly allowance. They’ll learn to better appreciate the value of every dollar when they have to work for them. You can also offer them a few bucks more if they do a couple of extra chores.
Discuss wants and needs.
Teach your child the difference between wanting and needing something. You can use your own household budget to show examples of when you cut back on things you wanted but didn’t necessarily need.
Set savings goals.
Kids need a tangible goal to motivate them to save. For example, if your child wants a new $60 video game, you can teach them to save the money from their allowance.
Offer a savings incentive.
Your employer matches your contribution to your retirement plan. Why not offer the same scheme to your child? Make a matching donation to your child’s savings, and they’ll soon realize the more they save, the quicker they can afford something.
Let them learn from mistakes.
If your child is about to misspend their allowance, let them — at least for the first time. The consequences may be harsh at first, but they’ll gain a valuable lesson through the experience. And they probably won’t make the same mistake twice.
Help them track their spending.
It’s easier to teach budgeting for kids when they track their own money. You can create a spreadsheet and convert it to an editable kids’ budget PDF where they can mark their purchases. With Adobe Acrobat DC you can convert PDFs, share them with your child, and let them view them on their own smart device.