Teaching Budgeting

I think teaching how to manage a budget is one of the most neglected areas - whether a person attends public school or is taught in the home. Which, sadly, explains a whole lot about our society.

Well, in our home, we follow pretty closely to Dave Ramsey's 'Financial Peace University' school of thought. We do a budget before we see a penny of income, then try to stick to that during the month, reducing each fund (food/gas/water bill/etc.) as we use them. Not only do we have a great idea of where we are financially at any point during the month, but we know when (if) we can buy anything extra without going into debt.

Since I feel that we have an excellent handle on our own budget, we will probably teach by example, in many respects. We'll start out when our kids first start earning an allowance by giving them three jars or envelopes - one for saving, one for tithing, one for 'play'. I honestly have no idea how the concept of saving and tithing will go for a young child, but I have some ideas of how to counteract problems if we encounter them. Seeing videos of the poor around the world and how our tithe money can help them is one method. Doing a Bible study on giving/generosity/tithing is another.

For saving, it might be easier to have a goal. This would be a good opportunity to see if there's anything they really want that's expensive and frivolous enough that my hubby and I have chosen not to get them. It could be anything from a game-system to a trip to Disneyland. We'll just have to see what it is that might motivate them. Seeing the money add up and the goal get closer will, I hope, inspire them to save for less immediate goals later.

When they are a bit older, we'll have them help create our monthly budget, balance the checkbook, pay bills, and all the other monthly tasks that go with being financially responsible adults.

Before they are old enough to go out and get a 'real' job, we'll have some formal teaching on why we do things the way we do. We'll probably actually go through the Financial Peace University as a family, plus do an in-depth study on what the Bible says about money and stewardship.

So I think that's the overall plan.