Teaching your children how to budget

Learning how to manage a budget is one of life's most valuable skills. It's important to teach your children to budget when they are young, because before you know it they will be adults. Fortunately, showing your children how to handle money can be easy, and the benefits are endless.

The first step is being transparent about your own budgeting style. Children learn well through observation. You don't have to sit them through an accounting class, but you need to be honest about how and why you spend your money. If they are wondering why you can't go out to dinner one night, explain to them that eating out is expensive, so you must keep track of how much you spend.

As your children get older, consider helping them with their own money. Whether your kid has an allowance, works part time, or both, it's important that children start managing their own money. Let them make their own mistakes, but encourage them to carefully decide how to spend.

So why is financial competency so important for young people? Budgeting is not only responsible, but it also helps children feel competent and confident. Being trusted with responsibilities will help children feel more mature, which will help them succeed.

Beautiful World Canada, a non-profit that provides comprehensive scholarships to girls in Africa, encourages scholars to manage their own budgets. Not only has this proven to be the most effective method, but the girls enjoy it and they are learning critical life skills.

Beautiful World is a charitable organization that believes hope begins with education. Each scholarship provides everything a student needs for success, ranging from tuition to toothpaste as well as mentorship, employment training and medical care.