How to explain basic budgeting to kids - MoneySense

How to explain basic budgeting to kids

It’s worth repeating these 3 things


basic budgetingSpending less than you earn is the bedrock of good financial literacy, but it’s foreign to most kids. Your young child might have trouble grasping this at first, but it’s worth repeating:

1. “Say I give you $16 a week”

2. “You spend $2 each school day on a slice of pizza”

3. “That leaves $6 to put in your piggy bank”*

*Or bring your lunch and save it all!

More on how to explain…

Compound interest to kids »
Net worth to kids »

Ways your kids can earn and save

Run a successful lemonade stand »
Save money at school  »

Awkward parenting questions

How can I avoid money tantrums? »
Should you pay your kids to volunteer? »
Should I buy my 10-year-old a smartphone? »
Does my kid need a clothing allowance? »
Should I give my teen a credit card? »
My kid called from college and is broke again »

More tips on how to raise money-wise kids:

Ages 0 to 6: My first money moves »

Ages 7 to 12: Saving not spending »

Ages 13 to 17: Big kids, bigger budget »

Ages 18+: Preparing to launch »