Kids Finance blog post on

Kids' Finance 101

I have wanted to do this for the longest time and I am so glad that I finally did. I worry that our kids don't truly understand the value of a dollar and that it doesn't grow on trees. My husband and I use a credit card for just about everything. We pay it off every month but we like accumulating the points. Unfortunately that means my kids think that I always have money. So, this month, I pulled cash out for the month ahead. I put it all out on the table. My kids' eyes bulged as they have never seen so much money. I had Rachel create envelopes for each spending area: Groceries, Restaurants, etc. I almost fell off my chair when I asked them to grab how much they thought we needed for groceries. Boy, we wouldn't be eating much for a day much less a month! When they saw how much we spend on food alone, they almost fell over! They were devastated at how little money was left afterwards. Welcome to the real world kids! So each day, we are pulling out of our allotment. We are being much more cautious about how quickly we go through it and saying no to things that would normally be a "please mommy please" item. I have a feeling we may just keep on doing this! Would love to know how you are teaching your kids about budgeting and money! Please do share!

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