How to Budget for Children & Parents
Budgeting with kids doesn’t need to be difficult.
In fact, it’s never really too early to familiarise your kids with some core money concepts.
If you want to find out more about that then simply look below.
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Don’t Let Money Be an Off-Limits Topic
As a parent, you should be sharing information like how much you spent on groceries, household upkeep and even clothes.
Your kids should be making mental notes on how much money gets wasted when food is thrown away and how much electricity is used when lights are left on.
At the end of the day, you don’t want to burden your kids, but you do want them to feel somewhat responsible.
This will give them a real-world concept of what they are spending, and it will also show them that they should not be taking their possessions for granted.
Start with the Basics
Teach your kids how important it is to earn their own money.
This is the foundation which everything else is built upon.
When they are able to understand how they should be using their money wisely, you can then teach them good habits which will help them for the rest of their life.
Establish Great Habits
It’s vital that you implement a routine.
Money is a fantastic motivator, so use it to try and help your kids to grasp the basic concept.
Have them earn money through doing jobs and give them a weekly allowance.
You can even ask them to invest a small amount each week, by opening a savings account.
Practice makes perfect here, so work with them and try and help them to understand how important it is for them to keep doing what they are doing.
There’s A Difference between Want and Need
When it comes to managing finances, your kids have to understand what they want and what they need.
If they are able to distinguish between the two with ease, then this will help them to adopt the best spending habits and it will also help them to enhance their understanding of money overall.
Learn by Doing
Kids need to have real-world experience at the end of the day.
They need to be able to buy stuff with a card or buy things with their own money.
A lot of learning will take place when they are doing things rather than just reading about it.
When you feel as though you have covered the want and not need topic, it’s vital that you leave them to their own devices.
Change Their Perspective
When your child does want something, now is the time for you to turn the tables.
Instead of letting them look to you as a delivery system, you need to teach them to be their own delivery system.
Do they want a brand-new t-shirt?
If so tell them that they need to earn enough money and when they do, they can buy it themselves.
They need to do jobs around the house, or even jobs for other people.
When they do, they will be rewarded for it.
If you want to teach your kids about debt because you are in debt yourself then Bankruptcy Canada can give you the support you need.
Contact us today to find out more.
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