How Setting Budgets Can Teach Your Kids About the Value of Money
Some things that come easily for me when it comes to parenting. I love organizing, planning, and creating routines that my family can thrive on. However, some things have proven to be challenging in this department. Money is one of them.
I have to admit, money has never been an easy subject for me. Growing up, money was something that I needed to survive, but something there was never enough of. It’s hard not to carry that mindset throughout your life and into your adulthood. As a mom, I’m constantly trying to make sure my daughter’s relationship with money is a healthy one.
While it’s my responsibility to provide for my daughter, it’s also my responsibility to raise her with an understanding of the value of money.
As adults, one of the most helpful tools for staying on track with your finances is budget. Coincidentally, the same goes for kids. Setting budgets is one of the easiest ways to teach your kids about the value of money.
This theory has proven to be true recently with my daughter’s birthday gifts. For her birthday, we all agreed that she would receive gift cards to spend at Disneyland. Not only was this an exciting gift for her, but she would also be able to account for her funds and decide how to spend them.
While a limitless bank account might seem like a fairytale for some kids, it doesn’t serve them for their future. Kids need to understand that every action has a reaction. This means that every time they choose to purchase something, whether it’s with cash, a debit card, or a gift card, there will be a negative transaction.
The sooner you begin implementing these practices in your household, the sooner your child will be able to grasp the importance and value of money. However, it’s never too early to start. Start with a small amount and make changes as needed to fit your family’s needs.
Another important factor here is how your child earns the money. While it can be tempting to simply give your child money, try to teach them ways to earn it. Chores, good grades, and good behavior are easy ways your child can start earning an allowance.
Always keep in mind that there is no one-size-fits-all approach when it comes to parenting. Simply try new methods and see what works best for your child and your family.