Budgeting With Kids

As a parent, are you teaching budgeting to your kids?  Many parents wonder at what age and at what important junctures should they teach their child how money works.

Our approach at The Alexandrite Group LLC is to “train the trainer”. We build confidence in the parents so they can educate their children. We show parents how to teach their children that saving pennies can add up to prosperity; how compound interest grows the balance in a bank account; how to avoid getting into uncontrollable debt; and how to put aside money for big and even bigger dreams.

It is never too early to start. We suggest, “start when your children are young and impressionable.” Children who are empowered as savers today, will be investors tomorrow, and potential creators of wealth in the future.

We strongly believe that one of the best ways to raise financially responsible and independent children is by example. However, we recognize that many parents feel overwhelmed and doubt themselves when speaking to their children about money. Truth be told – parents are unsure of the topic itself, and do not know where to begin and what to specifically model. That’s where The Alexandrite Group LLC can help. We create a custom curriculum, family by family. While the core concepts are easy to understand and convey, most parents need the coaching and expert advice that we offer. We provide age appropriate ideas and suggestions for your children. We cover things like:

• Spending
• Saving
• Sharing
• Earning

• Saving and planning for your children’s futures
• Appropriate ways to give your kids money
• Deciding age-appropriate allowances

We’re happy to explain the use of allowance and how it can be integrated with your family budget.

Our motto for instilling financial responsibility in your kids: Start young. Show by example.

Financial education for kids should start as early as your child can understand that buying an item or service costs money. Encourage them to ask questions now so in later years your discussions about finances will be more natural.
Concepts your young child should understand:

• Understanding prices and how they relate to money
• Why they can have some things, yet not others
• Wants vs. Needs
• Saving today means more resources for tomorrow

Spending and saving habits could be easily influenced by peer pressure. Fortunately, parents still have a strong influence at this stage and can steer their pre-teen straight about being dollar-disciplined.
Concepts your pre-teen should understand:

• Learning about comparison shopping (value vs. price)
• Avoid comparing your family’s possessions with those of your best friends
• Keeping things that they own in good repair
• Choosing simple investment choices

Your teen is about to enter college or graduate from high school with their first “real” job. Many parents wonder if they have properly prepared their children with adequate knowledge concerning finances. It is never too late to teach financial responsibility.

Concepts your teenager should understand:

• Understanding gross vs. net pay
• Paying bills using online banking
• Keeping and organizing financial records
• How to use credit and debit cards responsibly

Concepts your college-bound student should understand:

• Creating a spending plan
• Learning how to apply for loans and understanding interest rates
• Investing for the future
• Earning money while in school
• Refining wants and needs

You may want to invest in your child by arranging for a session or two with us. Schedule a consultation to discuss this today.