7 budgeting superpowers to teach your child

Rent, electricity, phone, internet, gas, groceries—it reads like a nursery rhyme, minus the fun. But the big question is whether there’s anything left at the end of the month.   

 

Luckily, there’s a superhero who can help you manage your money. It’s your friendly neighbourhood budget! 

 

Think of it as a valuable gift you can offer your child. One that will help them be financially savvy about their choices and buying power for the rest of their life.  

 

Plus, at the end of this article, you’ll learn about a special tool designed to help your child make their first budget. But first, let’s take a look at the benefits of budgeting and how to discuss them with your child. 

 

It might seem like a difficult topic to explain to young children, but our tips are kid-approved. Plus, you can adapt them to fit your child’s age and personality. (But really, who doesn’t love superheroes?) 

 

01. Understanding where your money comes from and where it goes 

Where does your money come from? How often do you receive it? Where does it go? What can you afford to buy? Having a budget makes it easy to answer all these questions. No doubt, keeping your budget up to date takes time and discipline—but it’s a big help when it comes to making decisions.  

 

A budget gives you a clear picture of where your money comes from, and where it goes. And that can help children understand the consequences of their financial decisions. Developing their budgeting muscles will help children manage their money effectively and make informed decisions. And all this will help them build sustainable financial habits.

 

How to explain to your child where their money comes from and where it goes 

“Imagine your coins and bills are little superheroes. A budget tells you exactly where they’re going for their next mission—to your piggy bank, to buy a toy or to pay for candy! In other words, it tells you where your money is going.” 

 

02. Reach more ambitious goals 

A coffee here, a sandwich there… You know how it goes. Money can disappear before you even notice. How many times have you heard that one less latte per day really adds up (in your savings account)? That’s the idea we want to pass on to our children.  

 

A bigger purchase doesn’t necessarily mean more expensive or more valuable, but in the interest of clarity, we’ll present it that way in this exercise.  

 

How to explain to your child why it’s important to save up and reach more ambitious goals 

“If you don’t have a budget, you end up buying lots of little things and poof—your money disappears, like a superhero with an invisibility cloak. When you have a budget, you can keep an eye on your spending and save up for the new bike you’ve been dreaming about for so long. It allows you to buy bigger, more important things. So you can take on bigger goals.” 

 

03. Prepare for the unexpected 

Your car breaks down, you get a cavity, your fridge goes on the fritz—you never know when life’s going to throw you a curveball. Having enough money to deal with unexpected events offers peace of mind.  

 

It’s a good idea to help your children develop foresight as early as possible, without making them anxious about unpleasant surprises, of course. 

 

How to explain to your child why it’s important to prepare for the unexpected 

“Superheroes always need to be at the ready because they never know when someone’s going to need their help. It’s the same thing with money. You put a little bit aside to prepare for the unexpected.” 

 

04. Make informed decisions 

Do you remember the first thing you bought with YOUR OWN money? And the feeling of finally being old enough to make your own decisions? Were they the smartest purchases you ever made? Probably not—you were practising.  

 

Over time, you’ve become more informed in your decision making, because now you’re aware that our consumer society is constantly encouraging us to buy more. Having a budget can help you make informed decisions.  

 

How to explain to your child why it’s important to make informed decisions 

“The captain of the superheroes needs to know everything that’s going on so they can manage their team and avoid getting into sticky situations. If the other superheroes sneak off on the sly, the captain could find themselves alone against a villain, and that wouldn’t be good. It’s the same thing with money. With a budget, you can keep track of the money coming in and the money going out. You’re in charge of your money.” 

 

05. Avoid impulse buying 

Everyone knows the feeling when the desire to buy something RIGHT NOW becomes all consuming. If not, lucky you. Being able to hold off on instant rewards to aim for bigger goals down the line is a skill that pays off in many areas of life.    

 

How to explain to your child why it’s important to avoid impulse buying 

“When a superhero first discovers their powers, it takes a while to learn how to use them. They need to develop their skills before embarking on dangerous missions. It’s the same thing with money. Sometimes it’s better to wait so you can buy something even better. Like a young superhero, you learn to wait for something better.” 

 

06. Planning to give back 

Is there anyone in your circle who’s known for having a generous streak? People who always pick up the bill when you go out to dinner. Who donate to different causes. Or who delight in giving little gifts to their loved ones every now and then. Hopefully, they never find themselves stretched past their financial limits. We all want the same thing for our children: that they learn to be thoughtful and kind, but not to their own detriment. 

 

How to explain to your child why it’s important to plan to give back 

“When you have a budget, you can plan to use a little bit of your money to help others or treat your loved ones. It’s like being a generous superhero, but without using up all your powers! You learn to be smarter about sharing.” 

 

07. Building self-confidence 

Achieving your financial goals gives you a strong sense of accomplishment and control. And it builds your confidence in yourself and your skills. We want our children to have that feeling too. 

 

How to explain the importance of self confidence to your child 

“When a superhero comes home after a successful mission, they’re proud of themselves. Having a budget helps us successfully accomplish our missions. And just like a superhero, you feel proud when you achieve your goals.” 

 

A tool to help your child make their first budget 

“Making a budget is like having super vision that lets you see the future of your money. And the earlier you start training, the more powerful you’ll become!” 

 

To help your child get a handle on these financial superpowers, the School Caisse has developed a video called Budgets and savings and a handy budget tool. It provides a clear overview of money coming in and going out, distinguishes needs from wants and makes it easier to understand and manage a budget. 

 

But that’s not all! We’ve also prepared a list of age-appropriate activities you can do with your child to help them hone their superpowers. They’re hands-on and designed to make learning fun. 

 

These activities will help your child find out where their money comes from and where it goes, learn to achieve more ambitious goals, prepare for the unexpected, make informed decisions, avoid impulse buying, plan for generosity and build self-confidence. 

 

Right this way!

 

7 fun activities to hone your child’s budgeting skills
Help your child hone their budgeting chops with these 7 fun activities. Turn financial concepts into superpowers and watch the magic unfold! 

 

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To take your child’s financial learning even further, check out the School Caisse app. It has fun games, challenges, educational tools and videos to help kids continue sharpening their financial superpowers!