Does My Child Need A Budget?

Have you ever considered developing a financial budget for your child?  Of course, the assumption is that a household budget already exists.  Helping our children to manage their finances at their present age, with their present funds, using their existing expenses, can only benefit them in the future.  Is your fifteen year old too young?  Of course not!  Is your ten year old too young?  Definitely not!  Is your three year old too young? No, if they can hold money, they can be taught to manage it!

 

           

You may ask, what would I include in a budget for my child?  What are my child’s present weekly expenses?  By having a weekly budget, as opposed to a monthly one, it can be easier for our children to practice taking ownership of their own their own financial activities.

 

What expenses does my child have?  Examples of their expenses can be anything from daily lunch money to CD purchases.  The goal is to create positive spending, saving, and investing habits within our children early on.  Invite your children to keep a journal of what they spend on daily basis and input the information on budget form.  Be sure to include your child in this process and encourage them to take an active role in developing their budget.  Just like adults, children should have a financial budget that they can live with.  Of course, a budget is a living and ever evolving document that can be adjusted as needed.

 

            Here is a sample budget:

                                                    Johlie’s Money Plan

  Month:_____________

           

	Week 1	Week 2	Week 3	Week 4	Monthly   Totals
Income/Allowance (monies earned and received)	$5.00	$5.00	$5.00	$5.00	$20.00
Expenses (lunch money, shopping, snacks, candy, video games, club dues, etc)	$3.00	$3.00	$3.00	$3.00	$12.00
Savings	$1.00	$1.00	$1.00	$1.00	$4.00
Donations (church and other charities, etc.)	$1.00	$1.00	$1.00	$1.00	$4.00

 

            Having reservations about the effort that will be involved in training your child to follow a budget?  You may want to consider the long-term benefits to their financial well-being, as well as your own.  Reducing impulse spending (for both the child and parent), minimizing the stress associated when shopping with our children, and developing a sense of independence within our children as they learn to manage their own monies.   Introducing the concept of a budget to our children can also help us in evaluating and abiding by our own financial plans.   As a majority of teachers know, when you are able to teach a concept effectively, you have truly mastered the skill!

 

 

Managing money is an issue of the heart….

Kandise Thomas-Humphrey, M.S.Ed.