Budgets and kids are two words rarely found in the same sentence. It seemed that no matter where my children were, if I had money on me, they would be by my side instantly with an idea or a way for me to spend it. Maybe this does not happen literally, but people with children, teenagers in particular, can relate.
On a serious note, it's absolutely crucial that our children learn proper budgeting. We as parents set the example for our children. They learn behavior from our habits whether good or bad. I would love to be able to give my children everything they want, and I have a very hard time telling them no. In all actuality, I needed to teach them that patience, budgeting, and money management are all very important.
We have become people who want instant gratification. Whatever we want we buy with our credit cards and worry about paying for it tomorrow. While we are raising our kids, if we buy them things the minute they come out, we are teaching them that this is the way things should be. A "need it right now" expectation could lead to a large amount of debt in a short amount of time when our children go to college or start out in the world.
When my oldest child started junior high, she began asking for brand name items, like shoes and jeans, the cost of which were not within our budget; this was my first true opportunity to teach budgeting. It also became apparent that she would get these items, then use or wear them a few times only to discard them when the next trend started. I decided that I would start paying only half and require her to pay half from her monthly allowance. When it was her money that was at stake, she began to make fewer requests. Suddenly, many desired items lost their importance and already purchased items got more use. We noticed that, when waiting for items, trends changed and prices for those items would come down. We also put a great deal of effort into having her bank half of her money.
Discussing debt, budgets, and credit cards was an important conversation before she started college. Credit card companies immediately target kids as soon as they get to college; that is why it is so important for them to understand the consequences of any debts they might accrue. Having our children equipped with the life skills needed to start life on the right foot is the most important thing we can give them as parents.
