In Teaching Kids About Money, Part 1, we laid a foundation about beginning to help your children think about money -- immediate and delayed gratification, spending, and generosity. In Part 2, we set a few more helpful concepts in place before giving some practical games for teaching about money in Part 3.
Once your children start getting the ideas introduced in Part 1, you can introduce them to budgeting: allotting some of their money to different categories (charitable giving, saving, food, etc.). This is an important value to plant and nurture.
In regards to spending what you have budgeted together, show the child how much frivolous spending adds up. Teach them to give up little things: a coffee here, a soda there, a Dollar Tree treat here and there. Physically collect the money that these little things would have cost so your children can see how much money they could have to work with if they control their spending and save.
