Teaching Kids To Budget Money

Every year when it was time to get ready for school or college, we always had a battle with the kids because they wanted to buy expensive things. 

We decided to give each child a set amount of money ($250) and told them this was the amount they had to spend on their school clothes. We bought the large items for them (like a coat, boots, shoes). We encouraged them to shop around and look for items on sale.

The first time, my daughter came home with the clothes she purchased and she had very few items for her $250.00. The items she purchased would not be sufficient for the entire year. I suggested that she leave the price tags on these original items and also go out shopping again to other stores and try to make her $250 budget go much further. (I told her we could always take back what she decided not to keep.)

So she went back a second time and found that she could buy a lot more for her money. She realized all the items did not have to be "brand name" items.

Now, she's much more careful with spending and takes pride in getting the clothes she needs on a tighter budget.