Budgeting for Kids - Tips for Every Age


#1

Originally published at: https://pwk.republicwireless.com/budgeting-for-kids/

Budgeting for kids is a valuable life lesson that will benefit them throughout their lives. Like any parent, you’re always mindful of the things you teach your children. However, explaining money to a child may seem like a daunting task. There are a variety of approaches one can take when teaching their children the value of money, but what is best for your child specifically? We’ve put together a list of useful ways to teach children to save at all age groups. Here are useful and practical ways to begin teaching your children of all age groups how important it…


#2

One of the things that I work hard to explain to my son is the difference between cost and value.


#3

@amitl Great one, thanks for sharing! How old is your son if you don’t mind sharing? And what type of examples do you use to teach him about cost vs value?


#4

My son is 12, he has his own brokerage account. I talk to him about investing into the future and not worry about the day to day fluctuations in the stock market. He owns a couple of stocks, I don’t judge his stock decisions just point him to tools that provide publicly available information about the stocks.

I feel too many kids gets suckered into school based savings accounts that earn little to no interest and these accounts generate next to nothing in terms of interest…they are much better off keeping that money in a piggy bank.

As for cost vs value - my son will often wonder why I readily shell out 3+ bucks for a bottle of water when we are at
an airport, etc…but give him a hard time for buying a bottle of soda that costs only $1.50… his comeback… is “I’ll pay for it…I got a lot more saved in my piggy bank”…and I try to explain (with varied levels of success) that the cost of that item is not as important as the value that it presents to you at any given time. It’s still a work in progress :slight_smile:


#5

I like the example you use for cost vs. value! That’s a great way to put those purchases into perspective depending on the specific situation, and being able to make spending decisions based on that. It sounds like you’re setting your son up very well for the future :slight_smile: