Teaching our children to be financially responsible is more than just teaching them to save, it is also teaching them how to budget. As our children get older one of the ways we can prepare them for adulthood is by training them to be organized financially. This will require a few things of us as parents. We will need to be organized ourselves so that we will know how much they need in order to pay for their own overhead, such as toiletries, ect. The next thing is to help our child have a system in order to budget this money. There are many systems out there that can be helpful, envelopes or a binder with pockets can be used. The next step is to allow them to practice this training. Just as with teaching them to save it is our job to get out of the way and allow them to make their own decisions. As with anything practiced it won’t be perfect right away, we must allow them to fail in order to learn the lesson and do better next time. Keep in mind that it will be much easier on our kids to practice and fail at budgeting now rather than in adulthood.
Listen to today’s podcast for more insight on teaching your child how to budget.