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Set Up a Family Budget for Every Member of the Family

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One thing that parents often hear as their child nears adolescence is “Can I have some money?” Children want things much the same way adults do. Things like trips to the movies, CDs, or a new skateboard. For a child who is too young to have a job, their parent often becomes the source for their spending.

When you set a family budget it’s important to include your children’s needs as well. It’s crucial though to differentiate between needs and wants. All children want things and parents enjoy giving those things to their children. But an endless supply of requests for money can quickly break any parent’s budget in two.

If you child wants things that weren’t included when you set a family budget there are a few things you can do:

Make a chore jar for older children. This is a jar that contains extra jobs and the amounts you are offering for them. This is separate from the child’s regular daily list of chores and can include items such as painting the fence or washing the car.

Create a bank account for your child and deposit any Christmas or birthday money they receive. If you do this, when your child really desires something during the year you can check the account balance and then explain to them whether or not they have enough to budget for the item. If they don’t they can work extra chores to make up the difference or wait until another birthday or special event passes.

Placing a bit of money aside when you set a family budget, for your child is a good idea, but it’s important to make certain that they work for that money. Giving a child everything they desire is lovely in theory but it doesn’t teach them that a budget is essential to financial success.

Teach Your Children The Value Of A Dime

When children are small they are usually excited to find a penny under the sofa cushion or to be presented with a dime when they’ve helped with a small task. This fascination with money can quickly fade and children lose track of what it means to save.

When you sit down with your spouse or partner to set a family budget, it’s wise to include your children in part of the process. Children don’t need to know the details about mortgage costs or insurance premiums, but they can be included in certain aspects of household financial planning.

Teaching your children the value of a dollar isn’t really that difficult. Children understand at a fairly young age that in order to purchase things you need to pay for them. They watch their parents open their wallets and remove money or a credit card to purchase everything from grocery items to toys. They understand that mommy or daddy had to go to work to make that money.

Giving a child a list of chores to complete and a value for each one helps them see that with hard work comes reward. The chores don’t have to be complicated, for young children it can be something as simple as picking up their toys or setting the dinner table. They will feel the reward of a dollar earned when they are able to take that money to the store and purchase something they really want.

Setting time aside to set a household budget is a great idea and incorporating everyone’s contributions to the home is important. Placing a small amount of money aside for your children’s allowance each month will give them a great head start for their own budgeting needs later in life.

Children Can Save Too

To set a family budget takes a good deal of patience along with some careful planning. When you’ve got children the process can be even more extensive. Planning for things like their medical coverage, college needs and perhaps eventual wedding plans all need to be taken into consideration.

A parent can set a family budget that includes savings account for their child and this can begin even before the child is born. Savings can never begin too young and each dollar you save will directly benefit your child as they mature.

It’s astonishing to consider that if a person sets aside just $20 a month when their child is born, that when that child reaches the age of eighteen-years-old, there will be over $4000 waiting for the child and that doesn’t include interest. Considering that, if a parent saves $100 or $200 a month the savings naturally accumulate faster.

Teaching the child to save is also essential to their future success. You can sit down with a child as young as eight or ten-years-old and set a family budget plan for them. Explain to them that each week when you give them an allowance you will also be depositing an equal amount in a savings account for them. Liken it to their piggy bank. They’ll feel proud knowing that their hard work, whether it’s brushing the dog’s coat or cleaning their room is helping to set up their future.

Whenever you set a family budget to consider the benefits of investing in your child’s future. A firm foundation of financial understanding is priceless for a child. They feel the importance of saving and will strive to contribute to their own future as well. It’s a wonderful way for any parent to teach the basics of money to their child.

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