New Post Advanced Search

Coronavirus: The latest from MSE


The MSE team is working extremely hard to keep the info we have about your travel rights, cancellation rights, sick pay (and more) up to date.
The official MSE guides: NEW MSE Coronavirus Guides

NEWSFLASH 31/3
RESCUE FLIGHTS FOR STRANDED BRITS * SCHOOL MEALS VOUCHERS * BRIGHTHOUSE COLLAPSES

Teaching children budgeting

7 replies 182 views
nootnootnootnoot Forumite
1 posts
MoneySaving Newbie
If someone cannot afford to give their child money so that the child can learn budgeting, and if that someone does not trust their child to know the family income, how does that someone teach their child budgeting?

Replies

  • Dineen33Dineen33 Forumite
    303 posts
    100 Posts Name Dropper
    ✭✭
    Just make the numbers up.
  • MalkytheheedMalkytheheed Forumite
    104 posts
    10 Posts
    Just like anything else. 
    I just taught my daughter about the solar system without actually having to go there or having our own rocket. 

    Don't make the mistake of teaching budgeting alone. Teach investing and the importance of income bearing assets. That's what is really important. 
  • Neil_JonesNeil_Jones Forumite
    3.5K posts
    Eighth Anniversary 1,000 Posts Name Dropper
    ✭✭✭✭
    Charles Dickens wrote:
    "Annual income twenty pounds, annual expenditure nineteen [pounds] nineteen [shillings] and six [pence], result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."

  • pramsay13pramsay13 Forumite
    1K posts
    Tenth Anniversary 500 Posts
    ✭✭✭
    We do it with pocket money. 
    So for our 6 year old pocket money is £3. She has to save 20% of that which is 60p and it has to go in a separate money box / tub that can't be opened. It will be used for a larger purchase or something special.
    She has to give away 10% of it to charity or as collection in church, so 30p a week. 
    This leaves her with £2.10 of her own money weekly so if she wants to buy something like a magazine and can't afford it she cannot borrow money off mum and dad, she has to wait and get it the following week.
  • edited 16 February at 6:28PM
    NedSNedS Forumite
    397 posts
    100 Posts Name Dropper
    ✭✭
    edited 16 February at 6:28PM
    We teach our children through pocket money also. Sometimes we will make them wait and save to purchase what they desire, and other times we will advance (loan) them pocket money so they learn the concepts of borrowing and repaying debts. My wife criticizes me when I charge my children for doing household chores for them (OK, I'll do the washing up for you for £1), but this teaches them the value of work and paying someone else to do the things in life you do not wish to do (or are not able to do) yourself, something we do all the time as adults (When she argues I ask her so should we sack the cleaner and go back to you doing the cleaning?). They also learn that if they don't have the money to pay me £1 to get out of doing the washing up, then they have no choice but to do it themselves. That hopefully makes them think a little about choices next time they spend £1 on a can of Coke. There is a thriving little economy going on in our household with money changing hands for all sorts of reasons (income, debt repayment, purchasing of services etc). All valuable lessons in my book learnt within the safety of your own home as part of growing up
  • born_againborn_again Forumite
    2.2K posts
    1,000 Posts Name Dropper
    ✭✭✭✭
    nootnoot said:
    If someone cannot afford to give their child money so that the child can learn budgeting, and if that someone does not trust their child to know the family income, how does that someone teach their child budgeting?
    Never taught our daughter anything about budgeting. In 6 years she has more savings than we do (enough for a dammed good deposit on a house) just needs to earn the wage to afford the rest, and is always pleading poverty and can't afford to buy me a coffee...
  • Jami74Jami74 Forumite
    436 posts
    Part of the Furniture 100 Posts Photogenic Name Dropper
    ✭✭
    We've never done pocket money. My children have always been involved in the shopping though and have helped to make choices. They quickly got wise that buying a cheaper brand of bread/beans/toilet paper meant a bit of money left over for biscuits/yoghurts/jam. We've also talked about how much things like electricity costs, and the impact of turning off lights/not having hot water 24/7 etc. Saving money on necessities like shopping, electricity, water means money for things like trips out.
    @nootnoot how old is your child? And what do you mean when you say you don't trust the child to know the family income? What are you worried that the child might do with that information? I don't think knowing the family income or being given money are the only ways a child can learn about using money wisely.
    Mature student 2011-2016[
    Professional :D
    Debt Free: 01/01/2020
    Save £9.6k in 2020 - #30 -£416.66/£9,600
Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support