Budgeting money is something that adults do every single day of their life. But to your child, money seems like a much more simple concept. Lake Forrest Prep, an Orlando preparatory school, has ways to help teach your child about saving money.
Money Doesn’t Grow on Trees
To your child, money is magical. It pops out of the ATM, and then you can buy candy, video games, whatever you want with it. It’s pretty neat. It may not necessarily register that money is a finite resource, and you earn the money that you have. Before your child can learn the importance of financial responsibility, it’s essential that they understand that money does not grow on trees. A great way to teach this is by tying money to chores. A dollar for every night the garbage is taken out, two dollars for scooping out the litter boxes, or five bucks for every week that their room is clean can help them understand the tie that money has to hard work.
When it comes to budgeting with children, it’s often about saving. Sure, they could spend their 10 dollar allowance on a doughnut the day they get it, or they can save up for a few weeks and get the newest copy of Pokemon. It can be helpful for your child to visualize how much they save each week. Try a piggy bank, a mason jar, or even a chart that shows how close they are to reaching their goal! This will help instill a sense of financial responsibility and teach them to save throughout their entire life.
Spend, Save, Give
Take budgeting a step further by establishing a “spend, save, give” routine. Have three jars, each labeled with either “spend,” “save,” or “give.” Each week, part of your child’s allowance goes into each jar. Not only will this will help them to live within their means, whether it’s saving up for a game or treating themselves to a piece of chocolate, but it will also teach them to give back to their community.
By teaching financial responsibility at a young age, you can help set your child up for success. To learn more about getting your child to love chores or using real-life budgeting, check Lake Forrest Prep’s, an Orlando preparatory school, blog.