Budgeting is a Life Skill

Have you talked with your student about a budget? Children of all ages will benefit from a conversation about creating a budget, handling money, and saving for their future. Communicating your families plan is a great way to start, consider using online games to make it fun, working together with your child to create a budget that establishes financial awareness will assist them to be fiscally responsible in their future. The ability to manage their finances is a life skill and part of learning executive function.

  • Executive function – a set of cognitive processes used to plan, focus attention, remember information, and juggle multiple tasks successfully.
  • Financial habits and norms – the values, standards, routine practices, and rules of thumb used to routinely to navigate day-to-day financial life.
  • Financial knowledge and decision-making skills – familiarity with financial facts and concepts, and the ability to do financial research and make conscious and intentional financial choices. [1]

MAKE IT FUN. The internet provides so many options below are a few for a variety of ages.

Keeping it REAL

Don’t forget one of the best ways to teach Executive Function is through experience. Give your child the grocery list, a calculator, and a set amount of money and let them decided what items to add/delete to meet the budget. Select a stock from the Wall Street Journal and play the High / Low Stock game for a week. At the end of the week discuss the outcome and if they had used real money would there be a gain or loss? Or spend a week asking your child to journal a week’s worth of expenses. Seeing your costs on paper may help your child to understand how spending and saving within your home works.

Building Block Report, Sept 2016 [1]

Are you ready to explore a budget? Mint.com can help you get started!