One easy way to begin to teach your children about budgeting is to sit down and help them plan out a Christmas budget. This can work for older elementary children, as well as teenagers. If you are helping your children to buy Christmas presents for their friends and family members this is a great way to help limit the spending, while still giving your child freedom to make their own choices regarding gifts.
You may want to start by deciding with your child who she will be giving gifts to. You should take into consideration Secret Santa exchanges that may be happening at school, as well as friends that she might want to exchange with. You can decide as a family if you will have her give to each sibling, parent, and grandparent separately.
After you have decided on an amount that will allow your child to buy her gifts you may want to sit down with her and have her decide how much she wants to spend on each person. This can help her budget her presents appropriately. You may want to take her to the dollar store, so that she can find presents for her friends. You may also volunteer to help her assemble a crafty project or bake cookies for her friends to help her save money.
After you do this, you will need to make the time to take her shopping, so that she can find the gifts at the right price. If she has a specific gift in mind for each person before she goes, this may make the trips shorter and easier for everyone. You can also teach her to watch for sales, and to compare prices at the different stores. It is a great time to show your child how to manage her money effectively.
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