When is a good time to start talking to your kids about money? When should you start to provide them with the tools needed to help them create their own budget? What about the right time to start teaching them the discipline to stick to that budget? The sooner the better!
Developing money managing skills provides us with a strong foundation to build our lives upon. Good money habits gives your child the ultimate advantage in life. Love it or hate it we all need to use it – so better get used to it.
Starting the Conversation
Pointers to cover:
- Why budgeting is important
- The components of a monthly budget
- Fixed expenses vs. fluctuating expenses
- Tracking expenses
- Discretionary spending
- Tools and motivators for sticking to a budget
Questions to ask kids under age 9:
Can you think of different kinds of things that mom and/or dad need to pay for every single month?
Imagine I gave you $50 to spend at the toy store. Would it be smart to plan what you want to buy before you walk into the store or just to go in and see what you want to buy? Why do you think so?
Planning how to spend our money helps us spend it more carefully. Why do you think we want to be careful about how our money is spent?
Questions to ask kids over age 9:
A monthly budget is a way of tracking income and expenses. Why do you think this is important?
Did you ever overspend because you hadn’t planned well?
Can you think of different categories that might be included in a monthly budget for a family of our size?
Do you think it’s possible to plan for everything that happens in life? Why or why not?
Putting a Plan into Action
Have younger kids create a budget for their own money and expenses over the course of a month, and have older kids try their hand at creating a realistic monthly budget for your family.