Make the most of
is unlikely that your child is ready to take control of all the spending made on her
behalf. Gradually introducing visibility to and then responsibility for how money is
spent gives her a stake in the game. We suggest:
slow with small weekly budgets
used to purchasing items she needs to buy regularly like food, transportation or
towards monthly budgets
like clothes, shoes, toys and beauty products are suitable to get her to start
thinking about spending wisely, making her money last, and saving across
with long-term budgets
giving her money quarterly or even annually - ideally for items like clothes, sports
equipment or gifts -because those expenses fall irregularly and in highly varied
amounts. This will teach her to plan for big expenditures, prepare for the
unexpected and be disciplined over extended periods of time.
it into a savings account. This reinforces savings instincts and develops an
intuition for compound interest. It's easiest to do this with long term budgets so
money changes hands only a few times a year.
a plan for the unexpected
are you going to handle it when your child needs or wants something not covered by
the budget? Are you going to hold the line, up the budget, or develop an
alternative approach like lending her the money? Being prepared prevents
arguments or inconsistent approaches.