The ultimate way to teach your kids how to budget

how to budget

Teaching Kids how to budget is a must nowadays. Regardless of their age, they need to learn how to budget and be responsible for their choices.

By the time I’m writing this post, the L.O.L dolls are a trend and all girls want them. My daughters and niece are OBSESSED with them and oh boy the price is above the roof.


I don’t want my daughter to be less than her friends but seriously with that price she can buy a bunch of things.

Now I took some steps and made sure that I don’t give her the money for free and I wanted to teach her how to value her doll and keep it safe.

I know we all think that our kids are still too young for that and we should take the responsibility of all the budgeting issues but guess what: WE’RE WRONG.

I wrote a post about side hustles for moms but still, we can’t spend all our income on expensive toys.

Now let’s dive deeper into the topic, shall we?

What do we mean by budgeting?

Of course, we can’t just talk about a topic without putting our finger on the actual pain point.

A budget is basically the amount of money you earn and the spending among a period.

For example: having a certain wage that you get once a month when you work in a certain job.

The budget can differ when you get bonuses or second income.

Now your spending controls the net budget you get till your next payment.


How to make a budget?

how to budget

Making a budget is the number 1 key element to know how to teach your child about budgeting.

Make a list of “Need – want – saving – emergencies”

Groceries, electricity, water, kids’ diaper, and foods “if you got babies” are essentials and needs.

Things you want to have but you can live without. Such as a new laptop, new phone, new car, new printer…etc and yours already work just fine.

As a blogger, we can have a free blog themes, free courses, free templates …etc but we want to buy better ones.

Saving: whether for kids’ future studies, or putting aside some for emergencies, or for a trip that you don’t want to break your budget.

How to teach the kids how to budget?

how to budget

Use a clear jar

As we said budget is money you earn regardless of the method.

Use a clear jar for saving your kids money and they will see the money growing and know what to use it for later.

This method works for all ages.

these ideas are from youtube and awesome

DIY Mickey Mouse Savings Jar

DIY Starbucks Piggy Bank! Make Your Own Piggy bank!

Set an example

Kids imitate what their parents do especially when they see the positive outcome of their method.

You need to be their example in budgeting “Earning, clever spending, saving…etc”

The more they see the more they adapt.

Make them aware of the cost of money

Tell them how much each paper or coin money worth.

For example, how much hundred dollars equal tens of dollars.

Don’t overwhelm them with complicated numbers. Make it simple to stay longer in their heads.

Make the cost of opportunities clear

When they have the opportunity to play in a playground or buy something or order from a restaurant clear and give them the cost.

When I bought the LOL toy for my daughter, I showed her money, then I showed her how much she’ll pay for one toy and how much money will be left for her.

She made the calculation and saw how many toys she can buy with the same amount of money.

Payments cost working for

I know that we all love spending our wages on our children “why else would we work hard” but some extras they want, they need to work for.

I’m against rewarding kids for chores as they need to get the habit of doing their chores as part of, the day.

But extra chores that they feel challenging could be rewarded for a small amount of money which they can save for later.

Make it difficult to receive from you


As said in the previous point, make earning money as a reward for extra chores or jobs. Don’t pay too much for small stuff.

Don’t make it easy to earn.

Let them own a bank account

Take them with you to the bank, open a bank account and let the worker there talk to them about the account and what benefits they get.

Don’t forget to update them about the money added or taken from whenever it happens.

Teach them the methods of making money

Showing them or even talking to them about the nature of your job will give them an idea of how you are making money and how hard it is.

You can give them ideas to sell stuff they made by hand.

For example, they can buy from their savings a few lemons, sugar and plastic cups. Help them in making lemonade and sell it on the road. Make sure to be around for their safety.

Make sure to teach them about profit and not to be greedy.

The same idea could go with making hot chocolates in winter too.

Start Slow

Don’t follow all the steps at once. You know your child so reorder the steps as fit for them.

Use values not figures when you tell them about money

If your child is too young to know big numbers, then talk about figures.

Don’t tell them: I earn 1000 and must pay 700

Instead say: I earn a good amount but a lot of it we pay to have a house, water, power, food…etc.

Set Family Goals

Including your child in the family, goals is exciting for them and make them interested.

Let’s say you plan on going on a family camping trip. Show your child that you are saving for the trip to make it enjoyable, suggest that they can save to get something that will make the trip experience more exciting for them.

A toy, book, expedition hat, anything that would add spice to your trip.

See if they are interested and wanna save for it too.

More importantly, its an option not an obligation.

Count Everything

Your child would most likely forget about all of that once he/she holds something they just bought or got.

Keep a not of things they wanted and got so they know what was had and wasn’t.

Tip: if the child is too young to read or write properly, use pictures instead of lists.

When is the best time to teach your kids about budgeting?


Children are very clever and can learn too young about money, so teaching them about budgeting is easier than you think, and I know you can do it.

The tools to help you with encouraging your kids to budget

Budgeting trackers

Especially the fun ones and the ones with pictures or doodles.

Empty Jar

To apply the method mentioned above.

Countdown worksheet

To count when is a trip day or release day of something they wanted.

Budgeting apps

If your child has an i-pad download a budgeting app for them.

“In need of …….for…..”

You can put it on the fridge or board, list of chores and how much you’ll pay for each.

Your child can pick the chore, follow the rules and when she/he done get their reward.

In Conclusion

Budgeting is a sensitive topic for parents especially single parents but it can simple.

There are many methods to teach your child how to budget.

You should understand the budgeting and be your child’s example.

There is no age to wait to teach children about budgeting.

The earlier you teach your child, the easier your life will go.

Now then tell me which of these idea’s you already implemented and how do you find them successful or not?


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