Today’s fantastic family finance article is:
Roger Babson, the entrepreneur and economist who founded Babson College in 1919, once quipped:
“More people should learn to tell their dollars where to go instead of asking them where they went.”
So, how do people tell their dollars where to go? With a budget.
Give your kids an early taste of budgeting with this simple recipe:
- Pick one category. Choose something you’re currently paying for that your kid really cares about. Clothing? School lunches? Entertainment?
- Negotiate the amount. Let your kid do the math first. Then, bargain a bit to tighten things up. Are designer jeans really necessary? Swap in the discount ones.
- Set light boundaries. Identify any purchases that are strictly off limits, but allow as much freedom as you can.
- Hand it over. It’s crucial for your child to own the funds, the decisions, and the consequences.
Remind your kid: when it’s gone, it’s gone. That’s the learning part.
And what if the budgeted dollars disappear early? At least they know where they went! That’s progress.
Get tomorrow’s tip here.