How to Budget Money

How to Budget Money

What is a budget?

A budget is a plan we make for how to use our money. A budget plans for both spending and saving, and you can budget on a weekly, bi-weekly, or monthly basis. You can even create a special budget for specific items or events. The goal of a budget is to give you a plan for where your money is going and how it’s working for you.

Why budget money?

A budget can help you accomplish big savings goals and help you responsibly manage your money. No matter how much money you make or how old you are, a budget can help you build good money habits. As you explain budgeting to your kid, you can help them understand that a budget is just a set plan for how you want to spend your money and a way to make sure your funds are going where they are needed the most. 

How to budget money for kids

When your child makes a budget, the first thing to consider is how much money they have coming in each month, or income. If your child has started earning money through an allowance or a job, help them understand their income is what they need to budget. Budgets help us make sure we have enough money for everything we need and plan for the things we want. 

 

Budgeting is a financial habit your child can use for the rest of their life. Help kids learn this concept from a young age by teaching them how to budget their money before facing the responsibility of rent, utilities, debt, and adult financial decisions. 

Talking to your kids about how to budget money

Budgeting can be a daunting subject to dive into with your kids, and there are many different ways to budget. Help kids understand the general idea behind a budget and show them how to give their money directions to the places they want it to go. If your child has a habit of spending all their money at once or quickly going through their allowance, a budget can help them get more from their money and learn delayed gratification. Encourage kids to set money aside for saving and giving, and practice how to budget money with them. 

 

Budgets & plans is our seventh Money Mission topic for kids. Use a debit card for kids to help them keep track of spending and set savings goals while keeping an eye on their progress. Curious to see how GoHenry works? Try it out free for 30 days. Cancel anytime.

 

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Written by Kristin Yarbrough Published Jul 8, 2022 ● 2 min. read