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Image From: zimmytws from Getty Images/Canva Pro

Article By: Kelly Kirk-Xu & Emily Stevens

There are quite a few little pieces to the financial literacy puzzle. One of these complex pieces is budgeting. Budgeting is not a skill that comes naturally for any of us. It takes some time and (let’s face it) a few mistakes before you can fully hone your skills.

Budgeting is definitely worth the effort, though. The whole point of a budget is to organize your finances, so you aren’t overspending. A budget helps you and your family understand how much money you have coming in and how much money you have going out.

Budgets will help you and your family make more mindful decisions on what you are spending your money on and how much of your money you are willing to pay in certain areas. It also allows you to set money goals and build a plan to achieve them.

So, how do you even begin to build a family budgeting routine? Walter the Vault is here to help you create a budgeting routine that works the best for you and your family.

1. Pick a time the whole family is available to sit down for a discussion. Getting the kids involved is a great learning experience that will help them hone their budgeting skills!
2. Take a peek at last month’s expenses. You can write them out, add them up, and compare them to the previous month’s earnings!
3. Talk about your family money goals. How much do you want to be putting away for your children? Do you have any big purchases you’ve been dreaming about? Writing down these goals with a set number will help you create a clear plan to achieve them!
4. Create your budget! Now that you have seen the things you are spending your money on, you can make informed decisions about which areas you can and cannot cut back.
5. Plan your shopping lists. After creating your budget, you know how much money you have available for shopping. Having a plan will help you stay under budget, whether you’re shopping for groceries, clothes, or household items.

Budgeting and shopping are some critical pieces in the financial literacy puzzle. And, as the saying goes: “Practice makes perfect.” Getting your kids started with building good budgeting and shopping habits today will help them in the money mastery journey!