Family Funds Talk

[luciana]

Spoiler: Thread summary

Financial literacy should indeed be included in the school curriculum as it would help students develop essential life skills and lay a solid foundation for their future. Financial literacy education could start with basic concepts like saving, budgeting, and planning and progress into more complex topics such as investments and their potential impact. Many parents lack the means or know-how to teach these valuable lessons at home, so incorporating financial modules in schools would ensure that every child has an equal chance of learning them.

Some schools already implement creative initiatives to instill a basic awareness of money and its management. For instance, they hold assemblies encouraging students to save up for treats, which helps foster aspirations and instills restraint. This subtle method teaches students budgeting and planning, laying the groundwork for prudent financial decisions in the future.

Board games are an interactive and fun way to educate children on tricky topics like finances. A custom board game called "Money Matters" is a great example of an engaging educational tool. The game mirrors real-life situations, tasks players with managing budgets, and encourages thoughtful considerations before making purchases. Such initiatives in schools or at home plant the seeds for financial literacy and can significantly impact students' present and future choices.

Many parents on the forum shared their own strategies for teaching their children about money, such as using clear savings jars with different compartments for saving, spending, and donating, or creating custom board games that mimic real-life financial scenarios. These strategies help children grasp the value of money early on and develop essential budgeting skills. Early exposure to these concepts might even spark an interest in finance, leading some students to pursue financial studies later in life.

It's heartening to see educational institutions and parents alike prioritizing financial literacy. Their innovative approaches ensure that students develop vital life skills and grow into financially responsible individuals.

Hey all,

I wanted to start a conversation around family finances and how we manage our funds as households. This could include strategies for budgeting, saving, and even ways we've found to involve our kids (if applicable) in financial literacy. Share your tips and let's help each other navigate these often tricky waters!

I'll go first: I've found success with the envelope system for budgeting - anyone else use this method? I divide our monthly budget into envelopes marked for groceries, entertainment, etc., and that physical act of having to dip into an envelope really makes me think hard about purchases.

 

[travelmum]

Hey all,

I wanted to start a conversation around family finances and how we manage our funds as households. This could include strategies for budgeting, saving, and even ways we've found to involve our kids (if applicable) in financial literacy. Share your tips and let's help each other navigate these often tricky waters!

I'll go first: I've found success with the envelope system for budgeting - anyone else use this method? I divide our monthly budget into envelopes marked for groceries, entertainment, etc., and that physical act of having to dip into an envelope really makes me think hard about purchases.

Yes! I also follow the envelope system! Using cash and actual physical envelopes helps me visualise and control our spending, especially on eating out or impulse buys. It's a great tangible way to involve my kids too, teaching them about money and how quickly it can run out.

 

[luciana]

Yes! I also follow the envelope system! Using cash and actual physical envelopes helps me visualise and control our spending, especially on eating out or impulse buys. It's a great tangible way to involve my kids too, teaching them about money and how quickly it can run out.

That's great to know there are others who use the same system! It's encouraging to hear you've found it helpful in teaching your kids about money, too. I typically let my kids pick an envelope and explain to them that the money inside has to stretch until the next month - a great learning opportunity!

Do share any other methods or tips you have for keeping finances in order; I'd love to hear them!

 

[travelmum]

That's great to know there are others who use the same system! It's encouraging to hear you've found it helpful in teaching your kids about money, too. I typically let my kids pick an envelope and explain to them that the money inside has to stretch until the next month - a great learning opportunity!

Do share any other methods or tips you have for keeping finances in order; I'd love to hear them!

My other tip is to keep a detailed digital record on my phone using Google Sheets. I enter all our bills and expenses so that I can visually track our spending patterns and adjust our allocations as needed - it's an awesome way to stay on top of things and keeps our finances organized. I also keep physical records which the kids can help me file - teaching them about record-keeping too!

 

[luciana]

My other tip is to keep a detailed digital record on my phone using Google Sheets. I enter all our bills and expenses so that I can visually track our spending patterns and adjust our allocations as needed - it's an awesome way to stay on top of things and keeps our finances organized. I also keep physical records which the kids can help me file - teaching them about record-keeping too!

That sounds like a really thorough system you've got! Keeping digital records is a great way to stay on track and make adjustments where necessary - visual trackers are super helpful for seeing patterns. I use a simple expense spreadsheet on my phone too; it's satisfying to see everything laid out

 

[travelmum]

That sounds like a really thorough system you've got! Keeping digital records is a great way to stay on track and make adjustments where necessary - visual trackers are super helpful for seeing patterns. I use a simple expense spreadsheet on my phone too; it's satisfying to see everything laid out

Yup, it helps me stay frugal when planning our next vacations too! I can visually see if we need to tighten our belts for the next few weeks leading up to our trips! It is amazing how quickly one can lose track of their expenses, especially with kids.

 

[luciana]

Yup, it helps me stay frugal when planning our next vacations too! I can visually see if we need to tighten our belts for the next few weeks leading up to our trips! It is amazing how quickly one can lose track of their expenses, especially with kids.

I'm the same - visual trackers are a real eye opener and help me stay on budget short term for upcoming costs like holidays. You're right that kids can really add up expenses fast!

 

[travelmum]

I'm the same - visual trackers are a real eye opener and help me stay on budget short term for upcoming costs like holidays. You're right that kids can really add up expenses fast!

Sometimes it's an effort not to get swept away with the excitement of travel planning and future trips but I find that having a visual savings tracker helps keep us focused on the goal too! We involve the kids by getting them to decorate their own savings jars for their holiday spending money - which also teaches them a lesson in delayed gratification.

 

[luciana]

Sometimes it's an effort not to get swept away with the excitement of travel planning and future trips but I find that having a visual savings tracker helps keep us focused on the goal too! We involve the kids by getting them to decorate their own savings jars for their holiday spending money - which also teaches them a lesson in delayed gratification.

That's a great idea to get the whole family involved and get kids excited about saving. Decorating their own savings jars sounds like fun and an educational activity too! It's a good way to create some healthy competition and encourages more open conversations about money, rather than it being a taboo subject.

 

[travelmum]

That's a great idea to get the whole family involved and get kids excited about saving. Decorating their own savings jars sounds like fun and an educational activity too! It's a good way to create some healthy competition and encourages more open conversations about money, rather than it being a taboo subject.

Healthy competition and allowing kids some creativity teaches them a lot about the effort needed in achieving goals! The discussions that stem from these family savings projects are an added bonus!

 

[luciana]

Healthy competition and allowing kids some creativity teaches them a lot about the effort needed in achieving goals! The discussions that stem from these family savings projects are an added bonus!

Certainly! Learning that saving requires patience and dedication definitely teach them a useful life lesson early on, and having those meaningful conversations about finance is a great way to educate them!

 

[travelmum]

Certainly! Learning that saving requires patience and dedication definitely teach them a useful life lesson early on, and having those meaningful conversations about finance is a great way to educate them!

It's great to instil in kids the idea that goals require effort and time. And what better way than to let them experience it first-hand with a fun family challenge! This will definitely set them up well for their future endeavors.

 

[luciana]

It's great to instil in kids the idea that goals require effort and time. And what better way than to let them experience it first-hand with a fun family challenge! This will definitely set them up well for their future endeavors.

Absolutely, experiencing delayed gratification and working towards a shared goal is a wonderful life skill. It's a great way to unite the family in a common mission too!

 

[travelmum]

Absolutely, experiencing delayed gratification and working towards a shared goal is a wonderful life skill. It's a great way to unite the family in a common mission too!

We've all heard of those famous parenting techniques like allowing children to earn their treats or using a star chart for rewards but, in my opinion, nothing beats cold, hard cash! A clear financial goal and the temptation of some pocket money at stake ensures everyone stays motivated and engaged. My children learn about money management and saving up for something special - a valuable life skill!

 

[lioness]

Your method certainly teaches your kids some essential life skills and introduces them to personal finance early on, which is awesome. Learning to set goals and staying motivated with a reward at the end is a great habit to develop!

It's also a good way for children to appreciate the value of money and understand the effort needed to earn it. Some might argue that keeping kids motivated through intrinsic rewards rather than extrinsic ones is best in the long run, but your approach seems like a nice balance between the two.

What other techniques have worked for you, or do you find this method works best? Always interested in hearing about successful strategies!

 

[wellness]

This method has definitely taught my children a lot about money and instilled some financial discipline, especially with allowance and saving for larger purchases.

One technique I also focus on is getting them involved in budgeting for the entire family. I ask for their input on our bigger expenditures - like vacations or large household purchases - and involve them in the process of comparing prices and hunting for deals. This way, they understand the financial decisions we make as a family and how carefully we need to plan. It also helps them feel included and responsible for certain choices.

I try to strike a balance between intrinsic and extrinsic rewards too; often, the reward for a job well done is a fun outing or a special treat, not just money. This could be a picnic in the park, a movie night, or a visit to their favorite attraction - something the whole family enjoys together.

It's a constant learning process, but these strategies seem to be working for now!

 

[cissy]

This method has definitely taught my children a lot about money and instilled some financial discipline, especially with allowance and saving for larger purchases.

One technique I also focus on is getting them involved in budgeting for the entire family. I ask for their input on our bigger expenditures - like vacations or large household purchases - and involve them in the process of comparing prices and hunting for deals. This way, they understand the financial decisions we make as a family and how carefully we need to plan. It also helps them feel included and responsible for certain choices.

I try to strike a balance between intrinsic and extrinsic rewards too; often, the reward for a job well done is a fun outing or a special treat, not just money. This could be a picnic in the park, a movie night, or a visit to their favorite attraction - something the whole family enjoys together.

It's a constant learning process, but these strategies seem to be working for now!

Good to hear you found some strategies that work. Kids these days got it good with all these tricks and treats, but as long as they learn the financial lesson behind it, why not?

 

[wellness]

Good to hear you found some strategies that work. Kids these days got it good with all these tricks and treats, but as long as they learn the financial lesson behind it, why not?

It's a constantly changing world out there, and as long as these strategies help our kids learn valuable money lessons, we're giving them an advantage! We old folk had to learn everything the hard way.

 

[cissy]

It's a constantly changing world out there, and as long as these strategies help our kids learn valuable money lessons, we're giving them an advantage! We old folk had to learn everything the hard way.

True that! As long as our kids can avoid making some of the dumb financial decisions we made, it'll be a huge win for them.

 

[wellness]

True that! As long as our kids can avoid making some of the dumb financial decisions we made, it'll be a huge win for them.

Yeah, hopefully, they will have more financial literacy growing up. I think one of the most important lessons to impart is that patience is required when it comes to money; instant gratification is not always the right path. That being said, I'm sure some of the financial decisions we make today won't age well with time, but hey, that's part of the fun!