Teaching your children how to use money wisely is one of the best life skills that you can teach them. Giving them a “Birthday Budget” is a great way to teach your children how to live within their means.
For your child’s next birthday, tell them that they can spend X amount on their entire birthday. They can decide what they spend it on, but you will need to help them with their decisions (especially if they are still young). You can show them ways in which they can get the most out of their money and how they can save a bit here and there, while still having a fantastic party!
- You and your child can write down a list of all the things they would like at their birthday, such as a cake, food, beverages, party packs, etc.
- Estimate the cost of each item. You will probably, initially, be way over budget – that’s ok (this can be a good teaching moment)
- Go over your list again. Remove those things that are not that important or that you could make yourself.
- Look for ways in which you can save, such as 2-for-1 deals or visiting bargain/factory shops.
You will no longer have to be the one who always says “NO”! You can just point out that they can buy whatever they want as long as it sticks within the budget and if they want one thing, they may have to forfeit another!