Have you ever tried to teach or talk about budgeting with children and been unsuccessful?

Because here in this article you will have sensational tips and guidance that will definitely help you on this journey with your children!

Firstly, taking advantage of the fact that we are going to talk in detail in this article about Budgeting for children, it is important to reveal some myths that make some parents and guardians not invest in their children’s financial education.


In other words, the main “lies” regarding children and money.

Myth 1: Children do not need to acquire financial knowledge

Childhood passes quickly and everything we learn at this stage we take with us for the rest of our lives.

In this context, the child must know the basic concepts of how to manage money, how to save and how to prepare for their future.


Teaching children how to manage money can allow them to focus on important aspects of their lives that may have previously been neglected.

Myth 2: Children do not have the ability to learn about money

Another mistake is thinking that children are not capable of learning about budgeting or capital.

Of course, the teachings must be introduced according to the age group and development of each child.

But educators and experts have already proven that children can learn about finance very well.

→ SEE ALSO: When Should You Give Your Child a Debit Card?

Myth 3: Financial education is boring

Financial education is not always seen as a fun topic. Money is an abstract concept, yes. But, with practical examples, this learning becomes interesting for children.

With the tips in this article, you will see that it is a matter of techniques and opportunities.

Yes! By giving children the opportunity to learn and participate in finance, they become very interested and applied in this task!

Why teaching Budgeting for children is important

According to experts, it is from the age of three that children begin to understand the value of money. So, this is a good time to start talking about Budget for children.

For example, children are already able to understand the most basic financial concepts such as: what money comes in and what goes out, how to save, what is a priority in a family’s financial life and what is not, etc.

Therefore, teaching at home, from a young age, the importance of managing your money responsibly can help improve your financial health in the future.

Also, by teaching children where money comes from, they learn that it is the result of effort and work.

How and when to start a budget conversation with kids

According to an expert, from the age of three it is already possible to talk and teach basic concepts about money.

From the age of six and seven, we can already talk about basic budgeting concepts for children. Savings concepts are one of the best topics to start a conversation with children.

In this case, savings is a very simple type of financial concept and children as young as six or seven years old can already understand it.

Furthermore, talking about savings will provide important insights into financial organization and the importance of saving for the future.

From the age of eight or nine, children can begin to apply the concept of savings in a practical way in their daily lives (with the help of adults).

For example, encourage your child to save every month until they have enough capital to buy something for themselves.

→ SEE ALSO: The Right Way to Gift Money to Your Children: Early Financial Education

How to teach children what is a need and what is a want

This is a very, very important point. Teaching children what is a need and what is a desire is essential for us to create conscious citizens and away from exaggerated consumerism – which is one of the main attitudes that cause people to have financial problems as adults.

Therefore, it is necessary to explain the difference between these two concepts in a way that children understand. One tip to achieve this is to use practical examples for children.

For example, explain to your children that they need to have enough income to eat well and to dress appropriately for outings. These are examples of basic needs.

On the other hand, adults may use new toys that are not really new as an example of unnecessary or non-urgent spending.

In other words, there is no immediate need to spend money on toys they already have.

Starting to budget with kids

Obviously, to budget with children, all planning must involve relatively low amounts. In addition, spending on simple things should be established.

Talking to children about investments, interest rates and other complex concepts is something that doesn’t work (we can leave that to teenagers).

Below, we have created a step-by-step guide that will give you guidance to start creating a budget together with the children.

  1. Write down what money comes in.
  2. Write down what is a basic need, specifying the types of expenses and how much capital we should allocate to each one.
  3. Now, calculate the mandatory expenses and realize how much capital is left.
  4. Choose items that are not basic needs and how much money each person needs.
  5. Determine an amount to save and save.
  6. Determine a goal that could be a savings amount or buying something. This way, children understand that budgeting and planning have clear objectives.

Adults, parents and educators should keep in mind that budgeting for children is a practical way to also teach how to create future projects.

In other words, it is through effectively creating a budget for children that they achieve their dreams and achieve a better and more peaceful life today in the future, right?

Conclusion on the importance of budgeting for children

Finally, financial education is a basic skill to participate in today’s society.

People who don’t understand how different financial products and services work are more likely to incur impulsive or unnecessary expenses.

Therefore, it is important to introduce this knowledge from an early age.

It is this way of starting talking about Budget for children that will allow them to practice the habit of saving and organizing themselves for life.

→ SEE ALSO: How Savings Accounts Can Teach Your Children About Money