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Kids and budgets are two things that you don't often think go together. I used to joke that my kids could actually smell when I had cash on me, and they would say, “Dad I need...” They seemed to know exactly how much cash I had at all times. That may be a little over the top, but if you have kids I'm sure you can understand. On a more serious note, budgeting is a crucial skill that our children must learn. As parents, we are teachers and role models for our children. They observe us closely, absorbing all our actions -- both good and bad. I have to tell my children "no," as much as I would love to give them everything they want. What I needed to do was teach them about budgets, money management, and the value of waiting for the things they want. Our society has turned into a population that lives for instant gratification. We buy what we want when we want it, using our credit cards and paying later on. When our kids are growing up, we can inadvertently train them to believe that this is the way life is. Then they grow up and leave for college, immediately amassing debt because they continue with the same "I want it now" mentality. When my oldest daughter hit her early teens and started asking me for brand-name clothing, I knew it was time to start teaching budgeting. She would get new things and use or wear them few times, only to discard them as new trends came about. Once I started giving my daughter a monthly allowance, we agreed that, if she paid half, I would put the other half in. Her requests came down a few notches once she had to invest her own money. Then, without warning, some items were no longer as important as they used to be, while she got more use out of the items she did purchase. Having patience and waiting to buy items could result in a change in trends and possibly even lower prices on certain items. One of the other things we worked very hard at was having her put at least half of the money she received into savings. Last, and definitely not least, we made a point of explaining debt, budgets, and credit cards to her before she began going to college. College students are often lured by credit card companies, so they really need to have a firm understanding of the issues related to debt. One of the most important things we, as parents, can do for our children is to give them the tools they need so that, when they're on their own, they will be on the right track.
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