10 Responses for "What’s the best way to teach your child about budgeting, and saving their money for the future?"

1. Bethany July 12th, 2008 at 8:40 am 1

   You should look up this month’s issue of Money magazine. It was dealing with this very issue. And it’s not what you think. Kids with allowance are LESS likely to save money!

2. TigerLilly July 13th, 2008 at 11:06 pm 2

   It’s so hard, especially if they have friends with lots of money. My older kids finally get it, because I actually show them the bills and how hard it is to stay on budget.

3. Shawn_Sunshine July 17th, 2008 at 5:12 am 3

   My parents were like you and didn’t really have the money to afford to save themselves, but at age 15, they made me get a part time job so that I could learn the value of the dollar. They started to make me save money to buy my own school clothes and pay for my own car when I wanted one. Then I had to pay for the gas in it and the insurance.

   Yes, I hated it at the time, but now, I love them for it. In college I saw so many spoiled kids who were absolutely clueless when it came to managing money. I was so thankful that my parents did what they did. It’s maybe considered tough love, but it really paid off in the end.

4. Min July 20th, 2008 at 5:05 am 4

   Start with small allowances. Tell them to get a job. And NEVAH get them everything they want. Really, I’m spoilt like that. (:

5. kindi78 July 21st, 2008 at 12:13 pm 5

   don’t give in to instant gratification. allowance is one thing, but if you still buy them whatever they want, allowance then defeats the purpose. if there is an allowance, make sure you then have clear cut rules on what they have to pay for and what you will still pay for. and the less you give in to exceptions, the better they will learn – your landlord doesn’t give you a month’s worth of exception either……it’s harsh, but if you want to teach them about the real world, you’ll have to be strict with them

   glad you are looking into this…rather than waiting til it’s too late!

6. zeusbark July 22nd, 2008 at 11:45 am 6

   open a savings account for him, or her but do not give acces to that account to your child. When your child earns, or is given money destine a porcentage to the savings account 40% works nice, and the rest give it so it can be spend at will. The thing is that if you destined all the money to the savings account or try to push your child into savings the result will be that when they have money of their own they’ll throw it away in usseles crap. You have to find a delicate balance.

7. barnett95 July 23rd, 2008 at 7:01 am 7

   go to he has a wonderful program for young children and you can listen to his radio program live or thru archives. we are out of debt everything but the house because of him. good luck

8. sophieb July 25th, 2008 at 8:53 pm 8

   Depending on the age of the child, giving an allowance (even small) and connecting that to tasks is what I consider best. I’m from the old school so never had a credit card as a kid and as I grew I realized credit is not good (it’s useful in an emergency or for a big item like a house, but it’s the quickest thing that can pull you under). So teaching the child that “if you don’t have the money then don’t buy the item”, is a good way to teach them. If they are on the net teach them to research and seek out “a penny saved is a penny earned” type websites, and teach them to compare prices, and to review consumer reports (even for toys). I’ve learned, just by chance, that if an item doesn’t have at least 5 good ways of using it then I don’t buy it. You might want to let your child see you clipping coupons (and using them) to get cents off. There are barter websites, and for school there are grants.

9. Scott C July 26th, 2008 at 4:35 pm 9

   First, the best way is to be an example to them by living on a budget and saving yourself. Second, I would put your kids on commission. If they work, they get paid, if they don’t work, they don’t get paid. That’s how grown-ups live. Our kids (ages 9,8 & 6) get $3 a week. They give 10% to church, 20% into savings and they get to spend 70%. They have to live on the 70%. So, if they want to go to a friends birthday party, buy something, etc. then they have to use their own money. It helps them make good choices.

   If your kids are older (12+), then determine how much you spend on them (clothes, entertainment, etc.) and put it into a checking account in their name. Teach them how to balance their checkbook and how to live on a budget. The same rule applies as above in that when their money is gone, that’s it. They have to wait until the next deposit or do something else.

   Scott….

10. Dutch Master July 26th, 2008 at 7:00 pm 10

    For children the best way is to show them by your own example and teach them the compounding of interest and the miracle growth in it . Also take them through the urban ghetto and let them see what people who do not save , who do not have good credit , and who are spendthrifts end up like . That may jar their thought process looking at homeless and people living in squalor and filth .