Back-to-School means “back-to-spending.” But suppose you could turn it into Back-to-Basics? This is a great time of year to teach your children about budgeting. Start by helping them make a spending budget for the two major Back-to-School categories: supplies and clothing.
Start with supplies. The first step is to get a list of all the recommended supplies your children will need for the school year. “Need” is the operative word here. Give each child a small notebook and show them how to list each item and put its price next to it. Ask what supplies they think they’ll need or want for this year. Again, they should write down the item and its price. You can see where we’re going with this. I recommend that you agree to pay for all the “needs” and have them agree to pay for their “wants.”
Next, do the same thing with their clothing budget. Their list should be specific, detailing how many of each item they think they’ll need. You may be surprised at the total cost; and hopefully, they will be as well. After getting the totals, you decide the final amounts and prices. If they think that they “need” five pairs of designer jeans at $150 a pop, you get to say, “No, I’ll pay for the $35 pair.” This approach will not be an easy one, but it is well worth it.
Your children can now start to understand the dynamics of planning and, most importantly, budgeting.
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