How to Help Your Children Create Their Own Budget

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Being a parent comes with a lot of responsibilities, and one of those responsibilities is teaching children about money. This we know can be tough, but fortunately we have a few tips that can help!

If you have children at home who are at the point where they are starting to become financially responsible for themselves, the first step is to help them create a budget - here's what you can do:

1. Help them calculate their income. First thing's first - your children should have a clear understanding of what their income looks like. Before you do anything, outline all potential sources of income your child will have on a regular basis, such as a part-time or full-time job, depending on their age and current situation. Then, consider all other sources of income, such as if they have a babysitting job on the side or other part-time responsibilities.
2. Discuss their spending. What financial obligations do your children have? Are they at the point where they have bills of their own? Or, are they just required to use their own money when eating out, shopping and taking part in other activities with their friends? Here you'll want to clearly define what expenses your children have each month so that you/they can then determine how much of their income they'll have left over for other purposes.
3. Create a savings plan. It's important for everyone to start saving at a young age, so after you know how much money your children will have to use for entertainment purposes, you'll want to work with them to dedicate a portion of that to their savings. Although it may limit what they are able to do each month, they will most certainly be thankful that they have money stashed away when it comes time to do things like buy their first car or purchase their first home.

Once you've worked through a budget with your children on your own, the next step is to introduce them to a professional financial planner who can help them with more complex financial solutions such as how to save for retirement, how to set up a portfolio and so much more.

Here at American Investment Planners LLC, we want to be your whole family's financial planner - yours, your children's, your grandchildren's, you get the idea! If you're looking for an advisor, please give us a call at (516) 932-5130 or email us at info@americaninvestmentplanners.com to learn how we can get started with your family today.