Teach Your Kids How to Budget by Example

Give the kids a budget for back-to-school supplies and watch the magic work. Along with a set dollar amount, I give the kids some suggestions about cutting here and spending more there and tell them they can keep any leftover money. While I don't save any real money here, the kids learn that if they spend their money wisely on necessities they will have money to save or invest or spend on things they really enjoy.

It's fun to watch kids try to find the best deals and weigh the real cost of those fancy smelly markers. The ownership magic continues to work throughout the year as they realize that graphic folder they splurged on didn't really last any longer than the $.10 plain folders.

Interestingly enough, all of my kids opt out of purchasing a lunch box or bag. They realize that I can send their lunch in a plastic grocery bag and it doesn't cost them a cent. No more begging and no more complaints.

By Jackie