It is best to keep in mind the best beginning budget is a simple budget when budgeting for kids. If you have access to a spreadsheet program such as Excel, you can quickly and easily prepare a simple budget. If not, just use a notebook. I have used both, and find them both to work well. Kids love to be on the computer, so it may make it more enjoyable to them to use a spreadsheet. Plus, it gives them the added advantage of learning the program!


How To Arrange a Budget

Here is a very simple example of how to arrange a budget. The first portion is the income, and the second is expenses. At the bottom of each month, be sure to add or subtract your income from your expenses to see if you are ‘in the red’ (meaning not having enough income for the amount of expenses you are planning) and adjust accordingly. (If you are using an Excel Spreadsheet with formulas, Excel will do the addition and subtraction for you.)


 JanuaryFebruaryMarch Total
Total Income30.00100.0045.00175.00
Tithe (10%)3.0010.004.5017.50
Savings (10%)3.0010.004.5017.50


As you can see in the example, your child has just budgeted for more expenses in January than he or she has income. Use this as a teaching example. Explain that he or she will either have to work harder to earn more income, or will have to go without that new shirt or going to the movies that month.

This budget can easily be adapted to your household. Just fill in the appropriate sources of income (Bill’s Job, Jane’s Job, etc.), and expenses (Mortgage, Electric, Gas, etc.).

Creating a budget is an excellent way to keep track of your finances. It shows you where your money is coming from, where it is going, and places where you can cut back, if your monthly difference is in the red.




Need Great Reference Material?  Check out these great books!


Budgeting for Kids

Do I Need It? Or Do I Want It?



Budgeting for Kids

Smart Money Smart Kids




For More Detailed information on Budgeting for Kids:

Kids on a Budget

Julie Murphree is a blogger, newspaper columnist, and speaker on all things ‘Living a Simple Life on the Farm’. She is the author of \\\'The Farm Wife – Living a Simple Life on the Farm. She and her husband have 60 acres in NW Louisiana where they actively work on living as sustainable as possible.

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