How To Teach Children Responsibility & Budget Money

Teach your child to budget money and learn valuable responsibilty, in an economy that is so properous.

Children are so much smarter than we were 20 years ago and they need guidance on how to spend money. As soon as children are old enough to understand what money is and to receive and spend it, they are ready for a pre-budget (ages 3-8 years). You can start with a simple 3 jar strategy or 3 envelope strategy. Labeled "giving" "saving" and "spending".

Children between the ages of three, four, and five years old should be given three coins (or three bills) and instructed to put one in each container.

Around 6 or 7 years of age, children should be given percentages. Ten percent of their money goes to tithing, 50 percent of their money goes to saving, and 40 percent to spending.



You will have to help them in this process at first. Also, you need to be sure your kids are given their money in a way that allows them to divide it easily. For example, $10 could easily be divide into $1(10 percent for giving), $5(50 percent for saving), and $4(40percent for spending).

The distribution of money should be as follows: *dump and give, which happens on Sunday morning when we help our kids dump their money in to the giving compartment and give it to the church;*dip and spend, which happens when money is needed; and *want and save, which stays in the bank for now.

At this level, the only thing that should be written down is the savings, or "want and save" goal. The object of this goal should be something that children won't have to save for a long time. However, it should be more expensive and special than what they can get with their dip and spend money.

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