Controlling your home budget allows you not only to properly plan all expenses, but also to start saving to be able to implement your plans or dreams. It is best if the home budget is kept secret and the expenses are planned for the whole family, including children.
Planning home finances – why is it worth it?
A home budget often requires creative accounting to cover all the monthly obligations and needs of each family member. So it’s worth keeping your home finances under control for several reasons:
- avoid uncontrolled spending;
- better planning common expenses;
- see what we spend the most money on and what can be changed to reduce these expenses;
- be able to save smaller or larger sums for various purposes;
- be better prepared for unplanned expenses, which often surprise us;
- teach children to save and spend money rationally.
Home finances and children
It is worthwhile to familiarize children with the need to keep a household budget from an early age. Of course, this learning must be adapted to the age of the child. Nevertheless, it is worthwhile for the child to be able to participate in the planning of expenses. The sooner he realizes that it is thanks to work that he has money to pay bills, buy food or various things, the faster he will appreciate the value of money. Many parents wonder how to teach a child to save or rationally manage their pocket money. And the answer is very simple – by setting the right example and the opportunity to participate in planning your home budget.
Financial education of children – the sooner the better
We teach children many different things, but often forget about financial education. If we do not show the child that money has to be earned, they will not appreciate its value. They will think they will always be on the account. They will also not learn to plan their expenses or save for their pleasures and goals.
Consequently, it is extremely important that children are taught financial control from an early age. Learning through play will be most effective. There are many ways to educate children. The best known science of managing money is playing at the store, where children learn to plan purchases and related expenses.
Giving a child pocket money, as well as paying for certain jobs (not daily duties), is also an extremely effective part of financial education. However, you have to do it with a certain feeling, using common sense. After all, it is not about the child’s expectation of payment for all the things he or she does at home. Having the opportunity to have their own money and earn it, a child learns to respect it in a very simple way. In addition, he learns to plan his expenses and save. It is worth encouraging your child to have 2-3 piggy banks for savings for various purposes – e.g. purchase of a dream toy, small pleasures, charity. It is also worth doing shopping with children so that they are aware of the cost of living.