Using Household Budgets to Teach Young Adults Money Management
Starting when they were young, we tried to involve our kids in family budgets and planning, whether it was for our weekly grocery shopping or a trip to Walt Disney World.
Food Budget
Grocery shopping is a great was to teach money skills to kids. Discuss the household needs in advance, covering all the different food and groceries the household needs each week. Have the young adult add some extra or fun items as well. Set a budget that covers the items and take your young adult to the store with you. Show them how to save money by buying items on sale, and buying things in bulk. They will see they must stick to the budget, so they can get all the stuff the family needs for the week, not just spend all the money on what they want to get.
Clothes Budget
Clothes shopping is another area where young adults can be taught money management skills. First, figure out a budget in advance and discuss it with your young adult. Discuss the different options for shopping, the mall, outlet stores, even online buying, and the price differences.
Young adults can learn about careful shopping, looking for sales and bargains and of course sticking to a budget. They can also learn the value of designer goods, or lack thereof. They have a set budget amount, and can spend it on a single pair of designer jeans, or a several reasonably priced outfits, whichever they choose.
It's great to give young adults the opportunity to earn extra money towards the budget by working around the house or other chores, but be sure to stick to the budget so they learn that key rule. It's also an incentive for them to begin to work for themselves to save up their own money to supplement the various family budgets for their own benefit.
Vacation Budget
Planning for a trip or vacation is great way to get young adults involved in financial management and budget planning. Once you decide on a destination or trip, map out all the fun and activities you want to do, and figure out a cost.
Discuss options for saving money on travel, like traveling off season or mid-week. Show them how to shop around and compare prices, whether its for hotels, air travel or car rental. Kids can also learn about fees and taxes and how a hotel room advertised for $99. a night may cost $130. with taxes, charges and fees. As with other budgets, it's also an incentive for them to begin to work for themselves to save up their own money to supplement the family budget for their own benefit.
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Published by Ted Sherman - Featured Contributor in Business & Finance
Navy service WWII and Korea, BFA, MA. Retired, experience: exec. speechwriter, advertising, sales promotion, PR, graphic art, photography, travel and humor writing. Follow me: @travel4seniors, Editor of tra... View profile
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