Our eldest two children are finally old enough to budget. To understand, earn and save (and certainly ready to spend!!) their own money. Luckily, we have been trying to teach them about money and budgeting from a young age. But because we have never let them do it all themselves, we are now giving this a shot.
What Is a Budget?
A Budget is a list that helps you remember how much money you have to buy things. That’s the simple answer. And when it comes to kids, this is the way they need to understand it. Here’s how we explain budgeting to our children.
It is easy to make a Budget!
- Write down the money that you get
- Write down the money that you spend when you buy things.
Here is how it works:
If your parents give you R10 a week for allowance, then your “Income” (or Money) is R10.
If you want to buy a toy that costs R50, then you know you won’t have enough money yet. You only have R10 now.
So you have to earn 40 more rands to buy the toy.
R50 Toy MINUS R10 “Income” (Money)
= R40 Still Needed to Buy the Toy.
If you save your allowance for four more weeks, then you can buy the toy!
- Week 2 = R10 Allowance
- Week 3 = R10 Allowance
- Week 4 = R10 Allowance
- Week 5 = R10 Allowance
= R50 Total “Income” (Money)
If you save your money for four weeks, you will have enough money to buy the toy!
Use this sample budget below to practice making a budget. You kids might need some help to get it started. Also, have a look at The Mint for great ideas, tips, games and printables to help you and your kids, teens and parents budget better.
I’d love to hear your feedback and if you think this would help and work for your kids!