First get the child to write down a goal, a specific reason to save or a certain item to save for. As with the household budget, it should be realistic so that he or she doesn't get discouraged. Next, set up a spending plan. Work with your child to find out how his or her money is spent each week. Identify the necessary purchases and amounts that could be saved.
Most financial institutions offer special accounts for children.
They provide a safe place for your child's funds, while providing another valuable learning experience. The Monthly Budget Drawing up your household's monthly budget starts with determining the amount of money that comes into your household each month. Make sure you determine the total monthly income. This may be more than simply salary. For example, it also may include commissions, income from investments and rental properties and royalties.