Hi all,
I’m curious if anyone out there has tried teaching their kids about budgeting. I have a 10-year-old who’s (fairly) good about dividing her birthday money into saving, spending and giving categories. But somehow her “spending” amount disappears quickly, and she can’t seem to get the idea that just because you have the money doesn’t mean you need to spend it that month. Anyone have creative suggestions for handling this?
Thanks!
I was listening to a Gaby Dunn podcast this week, and her guest (I can’t remember her name) had an interesting suggestion for kids. It’s more for understanding compound interest, but might help with the idea behind your question as well – she said use jelly beans. Give jelly beans for good deeds or whatever you want to reward, and show the concept of interest by giving MORE beans when they can save the beans rather than eat them.
I’m probably butchering this, but I thought the idea was brilliant, so I went and found the podcast link: https://www.stitcher.com/podca…ith-money/e/54687378
I don’t have kids myself but I grew up in a decent size family and I too once was a kid. 
That being said, I know for me personally and for other kids I have observed, visuals seem to do a good job when it comes to me learning.
One way you could help her to visualize it would be to take something common she might spend her money on.
Show her how many of those items she could buy if she spent all her money up front.
(Something perishable would work really well)
Ask how much she would enjoy eating all of ___ thing.
Then take that same amount of items and show her how she could divide it up between a certain time period (ie. 4 weeks, 3 months).
Explain that by budgeting her money over a prolonged period of time she is able to get the most enjoyment from her money and also have something to be excited about and look forward to.
Basically, use the emotions about money to get the brain thinking about how to budget the money in a way that will create longer lasting emotions. By using visuals you help her to grasp the bigger picture.
Now granted, I am no psychologist but if I were a kid this would have helped me.
When my kids were between 5 -8 I had a pretend checking account for each child. Made checks for them. They deposited their allowance and gift money . When they wanted to buy something, they had to write me a check. No money, no buy!
Today, years later, my sons each have their own homes, and are extremely successful!
TiffanyConnors posted:
Hi all,
I’m curious if anyone out there has tried teaching their kids about budgeting. I have a 10-year-old who’s (fairly) good about dividing her birthday money into saving, spending and giving categories. But somehow her “spending” amount disappears quickly, and she can’t seem to get the idea that just because you have the money doesn’t mean you need to spend it that month. Anyone have creative suggestions for handling this?
Thanks!
When I was a kid all I got was $5 a month. My mom was poor.
So I had to think what I really wanted with my $5. There was some
months I buy candy or magazines other months. I would need it for
school things.
But when we had our kids. There was 8 of them. We did different
things. We started with a couple of change jars. 1 for them to spend
1 for giving 1 for family. The spending jar was for them to spend how
ever they wanted to but once the money was gone they got no more.
The giving jar was for giving to whom ever we find in our community
that needed help. The family jar was for doing some thing with the family.
This is where our kids learned allot about money because it would be saved
for 2 or 3 months some times more. Than we sit down as a family and deiced
on how to spend the money. If they wanted to a movie or spots event or just
stay in buy some chips and soda and watch movies. It was so fun watching
them pick what they wanted to do. Plus the kids seeing the money getting
bigger in the family jar made them want to save there money. We even had
the kids put there money tougher and buy some thing they all wanted.
All so if they wanted extra money they have to work for it. It my be for
us or other family members or shoveling snow raking yards mowing
grass or baby sitting.
Our youngest son learned to save his change. I will never for get
him going into a thrift store with $88 in change going up to the cashier
and asking if they would take his change so he could get Christmas gifts
the lady said yes. Well our son got 13 gifts plus wrapping paper with money
left over. The only thing he for got was tape. He asked me if I could buy it. I
just laughed and said yes. I miss having younger kids. But all our kids have
grown into fine young adults but 1 who a teen. lol
I love the family jar idea, Bonnie! Maybe a visual representation of what the family is saving will encourage my daughter to think long-term, too. Thank you!
@tiffany.connors your welcome. You do have to get create some
times with kids and money. But that is what worked for us.
