by
Stacy Wise
| Jun 24, 2019
How can I teach my tween the importance of managing their money wisely?
Your child may not have a full-time job or a mortgage, but learning to budget can help them develop lifelong money management skills. Here are 5 steps to get your child started with a budget:
1. Determine income: This would include regular income, such as allowance or money from mowing the lawn, as well as money received on birthdays or holidays.
2. Calculate expenses: Required expenses are necessary costs that must be paid regularly, such as a monthly cell phone bill.
3. Do a little math: Subtract expenses from income to reveal whether your child has enough money to cover necessities, as well as how much money is left over.
4. Talk about it: Explain to your child that the extra funds can be used for saving, spending, or sharing.
5. Balance the budget: Teach your child that spending should not exceed income. Help them maintain the register for their account.
Teaching your child basic budgeting skills can help them plan and become a financially capable adult.
Happy saving!
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