Give your child or teen a little more responsibility! Here are 3-easy steps you can take at home to teach your child about budgeting:
Give them an allowance and give them a financial plan for their allowance. Any good financial plan will have clear money goals and strategies for meeting these goals.
2. Any money your child receives, encourage them to save 20% of every dollar they receive. In the past, many of us as kids were taught to save all our money; however, as adults, we later learned this isn't sustainable.
3. Use cash! If you live in any major city in the United States, you are being nickeled and dimed every time you swipe your credit or debit cards. Your local supermarket wants donations, some other machine wants you to round up, the corner store wants a nickel for the bag, and your local restaurant is taking the tip; they are no longer suggesting it. Teaching your kids how to track their pennies, read receipts, and watch out for fees will save them thousands over their lifetime.