Where does all that money go?
This is one of the important questions your children will ask you, or themselves. Helping them with an answer is one of the
important life lessons you can teach them.
You are helping them learn about earning money with an allowance system. It is just as important for them learn how to
spend it wisely. A key is for them to understand how much money they have and what they are spending it on. Knowing whether or not they can afford to buy what they want is one of the secrets of success with money.
Budgeting is what will help your kids manage their money.
Learning early that a budget is a plan showing how much money comes in and how much money goes out is an important concept for your children.
To start, simply having them keep a record of the money they earn and what they spend it on will provide information helpful in planning for the future.
Often a record of this kind will help them see where they can cut spending in order to have more money to spend on other things.