I remember when I was five and got my first allowance.
My mom and dad say this to me all the time.
In fact, I remember when I was five and I started getting an allowance. My parents told me to budget my allowance and save some for my future.
I said, “I'm only five, why save now?” Now, at the age of eleven, I understand why.
It helps if first you understand a few terms.
BudgetingThe first term is "budget." My parents helped me understand this term, and how to do it, by giving me a simple exercise.
Lots of candy, but no money left!
We made a list of every item I spent money on, including video games, coloring books, football cards, and candy or special treats. Then, I had to see how much I was saving every month.
I realized I was spending every penny on these extra things and had no money left over to save. Sometimes, my parents even had to lend me more money.
My mom showed me how to look at every item on my list and decide what I thought was necessary.
The necessary things include educational materials I need for homework, such as flashcards, notebooks, calculators, and pencils.
The second term I learned about was "saving"...