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Budgeting for Children
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| The most important step to saving money when you have children is
commitment. You have to commit to saving, and commit to making it a
priority. Otherwise, it will too easy time and time again through the
years to opt for convenience, or to be swayed into “why not?” A clear,
firm commitment to the most economical options will take you through
lean and rich times with the same purpose. |
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| When your commitment is in place, it will be much easier to keep
your resolve. At times you may wonder why your children should go
without something if they don’t have to. You’ll wonder where the line is
between generosity and indulgence, or between moderation and
deprivation. You’ll want your kids to experience all kinds of things
that cost money. Or you’ll be exhausted from their pestering for some
new technology, and it will be a relief to just buy the thing. |
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| But when you have committed to saving as a priority, that commitment
will inform all of the financial decisions regarding your children. |
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| There are dozens of easy budgeting tips for children: refuse to buy
labeled clothing; set a budget for each child for Christmas and stick to
it; buy secondhand whenever possible; make take-along lunches for school
and work; make toys and choose new ones wisely; using the library for
books only read once; buy food in bulk; recycling toys and clothing;
book swaps; clipping coupons; looking for free museum hours; make your
own Halloween costumes, etc. |
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| But the real keys to saving with children are not in specific tips-
they are in attitude adjustment and active value transmission. |
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Teach your kids the value of money.
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| It doesn’t matter if you are well off, comfortable, struggling, or
on welfare. All children need to know that new dolls, electronics,
games, and even food can’t be plucked off the shelf whenever desired. |
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| But don’t say, “Money doesn’t grow on trees.” Instead, help your
child understand the actual cost of something. Share your financial
situation with kids, and involve them. “The doll you wants costs $50.
Daddy has to drive a bus for four hours for that doll, but we really
need his work for food. Let’s choose a nice doll at the church thrift
store.” |
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| Or, “Mom got a great new job and we’ll be able to go to Rome this
year to show you some amazing art. But we need to cut down on impulse
purchases to make sure we realize our goal. Your doll would cost five
weeks of allowance. You can choose her, or you can keep saving for the
art set that you’ve wanted since Christmas.” |
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Save first.
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| Every member of the family should have a savings goal. Decide
together. For families that struggle to put food on the table, it may
seem that saving is unrealistic. So choose a loonie a week, so that your
children grow up with the habit. That will help improve things in their
future. |
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Mom and Dad should make sacrifices, too.
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| It’s all fine and good to teach your kids that pricey fashion labels
are simply meant to gouge vulnerable wallets. But if you are shopping
for unnecessary new clothing every week, that’s not exactly fair, is it?
Teach your values by living them. If you value high fashion, teach your
kids about quality over quantity. If you don’t want your kids to demand
a new cell phone every time they invent a feature, show how you repair
and care for your perfectly serviceable computer. And sending your kids
to school with a pb and j sandwich while you insist on two fancy lattes
and eat Thai every lunch hour sends a very confusing and unfair message. |
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Make choices and understand priorities.
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| It’s not about not getting any stuff or never going anywhere. It’s
about deciding what the most important things are, about your children
weighing priorities too. Involve the children in the process. Show them
the weaknesses, and show them the benefits. “We went out for ice cream
after church every Sunday. If the family only goes once a month next
year, we’ll be able to afford to feed the puppy you wanted so much.”
“Because we bought your sports equipment used and kept our old iPods,
there are $766 dollars more in the account towards the space camp you
wanted to go to. It looks like it will be possible next spring!” |
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Know how the other half lives.
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| Wherever you fall on the economic ladder, show your children the
range that exists. There are always people better off and worse off than
you. Don’t teach your children to be greedy and feel entitled- enrich
their worldview and their financial literacy by getting them involved in
philanthropy. Often, children want to consume every new toy in sight to
fill an emptiness we all experience, and believe new objects will
fulfill, toys that might make us more desirable. But kids- and adults-
who are connected to helping people feel happier, less depressed, and
need fewer objects to feel important. There are lots of ways to help
your kids get involved. Youth In Philanthropy Canada is a great place to
search the options. |
| http://www.yipcanada.org/index_e.cfm |
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Help kids develop resources and learn the joy of contribution.
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| Children can contribute, thus learning sacrifice and the joy of
achievement. But don’t just bark, “Get a job!” Remember, children need
to be guided into developing and discovering their resources. Sit down
patiently, and brainstorm together. Share your values with your child,
and ask to hear his or her priorities, too. What’s most important to
each of you? How can you compromise? What methods can your child use to
earn or save? |
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| For younger kids, an either/or decision works very well. “To earn
more money towards the new running shoes you want, but don’t need, would
you rather help Aunt Martha in the barn for a day, or help Daddy shovel
the sidewalk at the senior’s centre?” For older children, ask them to
put down some ideas to try for earning extra cash, such as a paper route
or pet sitting. Then be encouraging and enthusiastic. Support their
efforts. |
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Be consistent.
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| Be consistent to your commitment, even when it is tough. Your
children aren’t deprived because you’ve decided public transit is a
perfectly respectable way for the family to travel. Your kids gain
experience and character by helping others, and by choosing possessions
carefully and working for them. What would they really gain if every
wish was fulfilled? Kids lose interest in new stuff fast. |
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| An attitude of gratitude at home is vital- don’t act as if the
family is suffering or deprived. Remember, it is not money and toys that
bring happiness, but security and freedom. Having enough, with potential
for the future, in a loving family that spends time together, is a much
greater gift than having every latest video game or a TV in every room. |
