Creating a budget can be an interactive process in regard to parents and their children. After all, someday your children will be in charge of their own finances, from receiving allowance money to their first job, and yes, all the way through college and their own families someday. Setting a good example begins with how you act with these important areas, demonstrating by example how to manage money.
Take the opportunity to walk your children through matters of the budget. Depending on their age, you could obviously have a varying amount of topics to give. A young child should be exposed to rationales of saving for a night out while your teenagers should be able to handle some responsibility when it comes to their own money. The key is to allow your child to see perspectives when it comes to money— whether it’s learning to be responsible with money or saving it for something fun, within reason of course.
Create your budget with regard to your goals. If you need to get out of debt, allow a set amount to go toward credit cards, even if it means cutting back on luxury items. Plan for the future and explain to your children, appropriate to their level of understanding, rules to live by in terms of finances.
You can even make it interactive. Using your child’s allowance or not, you can explain how you are saving, as a family, for a fun night out. Talk to your children about what they would like to do for a weekly event, such as going out to dinner or a movie. This will allow your children to mix in responsibility with fun. You can of course do the same with saving, another important aspect of budgeting.
Do what you can to be a good role model with money as in other areas of life. You have a hand in preparing your children for this important topic.