Check out the best tips to teach your children the basics of budgeting

Check out the best tips to teach your children the basics of budgeting

If you want to teach your children the basics of personal finances, this is a must-read article. Here you will find out all the details to prepare your kids to be financially smart. Keep reading and discover all the details!

If you want to teach your children the basics of personal finances, this is a must-read article. Here you will find out all the details to prepare your kids to be financially smart. Keep reading and discover all the details!

Piggy banks can be useful tools to help teach a child the basics of spending and saving. Here’s how to instill responsible money habits and foster a charitable spirit at the same time.

Explain that each one is earmarked for spending, saving and sharing any money received. Together, decide on what percentage of funds received will be allocated to each container.

The spending piggy holds money that a child can spend on fun, minor purchases such as snacks, small toys or inexpensive apps for a parent’s tablet or phone.

The spending piggy holds money that a child can spend on fun

Contribute 50 to 80 percent of the money received to this bank. Don’t vary the percentages you decide upon. Stick with those allocations. If you give an allowance, do so in small bills and coins so it’s easier to divide. A good rule of thumb is to give young children 50 cents to a $1 per week for every year of their age.

The saving piggy funds bigger-ticket purchases, such as a deluxe Lego set, a scooter, or video games. Contribute 10 to 25 percent of the money received to this bank.

The saving piggy funds bigger-ticket purchases

Keep a picture or written reminder of the desired item near the bank. What is more, to help a child learn about the benefits of saving versus spending, some parents provide interest for this fund, for instance, matching a child’s contributions with 5 percent of their own money.

The sharing piggy can be used for charitable efforts such as supporting an animal shelter or providing books for school children. Contribute 10 to 25 percent of money received to this bank. Parents should help a child select who receives the money and explain how the donation process works.

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