Fun Ways to Teach Budgeting
- Teach your child the effectiveness of the simple envelope budgeting system with this budgeting game. You will need a stack of envelopes and fake money, such as Monopoly money. Take each envelope and label it with the name of an expense, such as mortgage, car payment, utilities and groceries. Be sure to label one envelope with savings as well. Have your child place the correct amount of money into each envelopes, as if paying bills. Use any leftover funds as “fun money."
- Help your child learn the importance of saving by implementing a match saving plan. Set a goal for the child, such as purchasing a new toy, and advise the child you will match his savings dollar for dollar after he reaches a certain amount, such as one-half the cost of the item. Add your funds to the account only after the child reaches the agreed upon amount.
- Teach your child how items differ in cost and allow her to experience paying for items by letting her go shopping with you. Take the child to a store and have her pay for the items at the register. Take her to a dollar or toy store and give her a certain amount of money to spend. Look at different items in the store, pointing out what is affordable and what is not. For unaffordable items, discuss the amount of money the child would need to purchase the item.
- Teach your children the value of saving your earnings with the savings game. Give each of your children a jar in the same size and shape. Instruct them to fill the jar with money as quickly as possible. The children may do extra chores or find odd jobs around the neighborhood to earn money. The first child to fill the jar is the winner of the game. Celebrate in some way, award the child a small prize and restart the game. Consider taking the savings and opening a savings account for the children and continually depositing each time the jar is full.
