subject: How to setup a Kids Budget [print this page] How to setup a Kids Budget
Teaching budgeting for kids is a vital tool that you can teach to your children. To teach children budget techniques is to first define what kids budgeting is. This is a calculation and measurement of expected income and expense for a given period of time. A kids budget can be explained more easily to them, it is simply saving money now to spend later.
Budgeting for children can assist them in developing their financial mindsets now so they can reap the rewards later in their life. For example, budget for kids may be saving for the latest Playstation game which may take say five weeks to attain. A teenage budget maybe saving for designer sunglasses after four weeks.
By developing great children budget habits, you are setting them up earlier in their life of what money can and cannot do. These days, schools are not focused on teaching kids about money, especially in the realm of budgeting for kids. So where else can your kids learn about this? The family home of course!
The best place to start a kids budget program is right in their own home. The thing as parents to remember is to make it fun! You know that kids can get bored very easily, so make it entertaining as much as possible. Realistically, today's parents are too busy to teach kids about budgeting. The global financial crisis has added an extra pressure for both parents to be working, thus not being able to spend enough time teaching budgeting for kids.
To teach children budget techniques means investing and taking that extra time at night to educate them how to do it properly. This could be over the dinner table where everyone is eating their meals. Be pro-active and ask your children what they have done with the pocket money they have received for the week. Now remember that budgeting for children should be a fun activity for them, so don't hammer them for spending on wasteful items such as candy or comic books. Just advice them how they can allocate their resources better next time. It could be saving a couple of weeks pocket money to buy a coloring book for example.
Budgeting for teenagers is going to be different to a younger kids budget. A teenage budget may include items such as clothes, mobile phone bills and transport costs. A teenage budget will obviously be more costly than a younger children budget plan.
One of the fundamental tools for budgeting for kids that I highly recommend is saving at least ten percent into a savings account. This will teach kids what savings can amount to over the months and years.
At the end of the day, make kids budgeting interesting and exciting. Remember a teenage budget plan is going to be different. Also communicate with your kids consistently over this topic of kids budget and you will see them flourish into adults who will have a great financial sense on money.
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