Friends

 Right now, your child is actively participating in managing their money. They understand basic financial transactions and the importance of saving. This page will guide you in teaching them to budget, set goals, and make thoughtful spending decisions. 

• Understanding:  Your child knows how to handle basic financial transactions and understands the importance of saving for future purchases. 
• Interaction:  They are actively managing their allowance or earnings from simple jobs and setting short-term saving goals. 

Budgeting:  Actively create a simple budget for their money. 

• Task:  Help your child set up a budget that includes their income, savings, and planned expenses. Review it regularly to track their progress. 

Saving: Set and work towards short-term saving goals. 

• Task: Encourage your child to set a specific savings goal, such as buying a new gadget or saving for a special event. Help them create a plan to reach that goal. 

Debt:   Learn more detailed implications of debt. 

• Task:   Discuss the concept of good vs. bad debt. Explain how borrowing can be useful but must be managed responsibly to avoid problems. 

Credit: Begin to grasp how consistent repayment of small 'debts' can build trust, similar to a credit score. 

• Task:  Create a system where your child can borrow small amounts from you and repay them with a simple interest. This will teach them the basics of credit and interest. 

Budgeting Practice: Use a budgeting app or spreadsheet.

• Task: Introduce your child to a simple budgeting app or create a spreadsheet together. Track their income, expenses, and savings to help them understand how to manage their money effectively.

Savings Challenges: Create fun savings challenges.

• Task: Set up a savings challenge where your child aims to save a certain amount in a set time. Offer small rewards for reaching milestones to keep them motivated.