The Benefits of Budgeting

Jul 302014
 
English: Shopping carts in ABC Tikkula.

English: Shopping carts in ABC Tikkula. (Photo credit: Wikipedia)

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When it is difficult to make ends meet there is a particular parental struggle that doesn’t need to exist:  it is not necessary to feel guilty about setting limits on previously over-indulged children.  In fact, even if you haven’t established a precedent of over-indulgence, there’s no need to feel guilty about setting economic limits.  Like any tough situation, this one holds potential for some valuable learning:  there can be long-term benefits to changing a child’s short-term economic expectations.

Of course it can be difficult to say “no” to someone we love – and all parents want to be able to give their kids the best of everything.  But how do we define “the best”?  Can it be in the skills that we introduce and allow them to practice?  How about the benefits of budgeting?

Here are a few:

  • Setting priorities:  What is it they want the most?
  • Money management:  What is the relationship between saving and spending?
  • Planning: What will it take to get it?  What resources to they already have?  Which ones will they need to develop or find?
  • Self-determination: Are they willing to work for it?
  • Research:  Is there a way to get a better price on “the thing”?  Is it ever on sale?  Can it be found second hand?
  • Problem-solving: If they’ve not saved enough money how will they earn more?  Odd jobs?  Yard sale?

Giving your children a chance to learn the benefits of budgeting is a gift that will last far longer than… well… just about anything on their list!

 

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Day 28 - Unwrapping Christmas gifts

Day 28 – Unwrapping Christmas gifts (Photo credit: PictureWendy)

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