Today’s Tip: To teach children about money, teach them to budget.
The essence of money management is a personal budget. If you don’t know where your money goes, you can’t make decisions about where it should go. So, to teach your children about money, teach them to budget.
If you have teenage children, they could take over the entire budgeting process. You can have them create an Excel spreadsheet for your monthly budget, or they could use an on-line budgeting tool like CalendarBudget.
Have them start by recording all money that the family spends. Give them your grocery receipts each week. Have them record all of your bill payments. Once they understand how much you spend on hydro each month, they may actually learn to turn the lights off when they leave the room!
If you have younger children, have them keep a simple budget. Give them a small allowance, and have them keep track of what they save and spend.
How you actually do the budget isn’t the point: just do it!