Tips on How to Teach Your Child About Budgeting

Jun 27 • Lifestyle • 2934 Views • Comments Off on Tips on How to Teach Your Child About Budgeting

How to manage your own money is one of the key life skills that all children need to know. However, until it’s taught on the national curriculum, parents are the ones responsible for showing their kids effective budgeting and it’s important to instil the ideas while they’re still young. Especially, if you don’t want them sponging off you through their teenage years and beyond; and you want them to cope better with the adult world. If you’re stuck for tips then here’s a handy list of the best ways to teach your kids how to budget.

Show them how it’s Done

Take your kids through the ways in which you save money. This can involve showing them your monthly budget for food shopping, using comparison websites, or putting money into saving accounts or ISAs. Although, it greatly depends on the age of your child, having them help with the family budget can seem like a fun game to participate in – why not get your child to search for bargains in the supermarket or talk to them about what they can buy with money that they save up. With the amount of apps that concentrate on visually-appealing ways of maintaining a budget, it is now easier than ever to make learning about finances less of a chore. If you need to find a Girls School Uniform for instance, show them how to shop online to find the best deals.

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Give them a Clothing Allowance

For a long time, you’ll be choosing your children’s clothes for them and you’ll be trawling the wed for affordable School Shirts; but inevitably there comes a time when they want to start making those decisions themselves. Do a rough calculation of how much money you think is acceptable to spend on clothing in a year, say, and give them this money, making clear that if they spend it all there will be no more. It can encourage them to look for bargains, for example by buying ‘vintage’ clothing, instead of blowing all their money on one item.

Give them Places to Save their Money

Start with buying your kids a piggy bank where they can put any pocket money, birthday money or anything they earn from a part-time job if they’re old enough. When the time is right, get them their own savings account so they have a more ‘adult’ way to save their money. Explain that if they don’t touch this money it will gain interest and the more they save, the more money they’ll have for future holidays and other fun activities.

Let Them Do Odd Jobs

You can financially reward your children for doing odd jobs around the house, especially if they want to save up for something a bit more expensive. It’s important to steer away from rewarding them with money for everyday chores like washing the dishes or keeping their rooms tidy; but for washing the car or mowing the lawn, a financial incentive can be a good way to teach them about earning money. And money that they have to work hard for is unlikely to be frittered away and teaches them the value of providing for themselves.

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