 TITLE: How to Teach Your Child to Budget Money CONTENT: Teaching Elementary School Children How to Budget\n-------------------------------------------------\nThe most important thing you can do to help your kids understand budgeting is to model good money management. Telling your kids that budgeting is valuable isn't nearly as impactful as demonstrating good practices every day. If your elementary-age kids have a natural-born interest in accounting, you can pass along some practical tips on budgeting. Otherwise, lay the groundwork with these fundamental concepts:\n*   **Money is finite.** Even a very young child can learn that we can't buy everything we want just because we want it. Explaining—repeatedly, if necessary—that money is a limited resource sends the message that money is something we manage.\n*   **Having money is saving money.** Open a savings account for your child and help them understand that savings is the place where their money should live. At this age, keeping money in savings and withdrawing only what you intend to spend is a good starting practice. Later, when your child has more money coming in, you can introduce the idea of setting aside money to save. Additionally, having a piggy bank at home to collect cash encourages kids to keep track of their money and watch it accumulate.\n*   **Opportunity is yours to create.** If your child wants a video game that isn't in the budget, challenge them to figure out how to afford it. Can they do some extra work around the house to earn money? Do they have money in savings they can use? If the dollar amount is out of their reach but you have the funds, you could offer to match their contribution. END