You may find yourself with a child who spends too little or trying to stretch their money for an item that isn’t worth it to them. Keep your children accountable for their spending. They may decide to save more for a larger base allowance or spend less so they don’t have to save as much. For instance, you might tell your child that if they can save $35 by the end of the month, they'll get an extra $3. Give your child an allowance based on how much money they save. As a parent, you need to revisit the budget from time to time and make sure they aren't just blowing through their whole allowance in one week! While this won’t teach your child about how money works (deposit, interest, etc.), it’s an easy way to give them some freedom while still keeping a lid on their spending. Then, when the week is done, hand them a small envelope with their allowance to spend however they like. For instance, you might give your child $6/week for doing their chores and then $1/week for each additional chore they do on top of that. Give them an allowance based on their chores for each week. Some of these ideas can be used in conjunction with one another, while others will work better on their own: There are infinite ways to teach kids to budget, but we’ve provided a few ideas below. It's easy to make this process enjoyable and educational when you teach kids to budget their allowance. Learning to do your chores is a vital skill that you'll use for the rest of your life, and it can be fun.
You can argue that this is all part of budgeting, too – each kid will have a different savings goals/play money allotment based on what they want to purchase, and it is a great lesson in the cost of things!Ĭhores are an important part of a child’s life, even before they have actual disposable income. The biggest downside to this system is the difficulty in assigning a value to each chore some chores are more labor-intensive than others, but if you pay your child for every chore they complete, they risk not completing one or “forgetting” to do something. 9 Home Security Measures You Should Teach Your Kids.The first approach has some obvious pros – kids are rewarded with cash for completing chores they would otherwise have to do without compensation they learn about budgeting by having an expendable income that must be accounted for each week there is less parental involvement in monitoring purchases. There are several schools of thought on this topic, but we’ll focus on two here: the “pay them for chores” school (kids get paid for doing household tasks) and the “give them an allowance” school. You might like: 6 Ways Young Kids Can Help Around the House. One of the most common debates revolves around how much allowance to give and what should be expected from children when managing their money. Before we discuss kids and budget, let's talk chores and paying for chores.