Free Budgeting Worksheets for Kids to Make Money Fun

Why Should You Teach Your Kids About Budgeting

Financial literacy is one of the most important life skills. However, few of us are given the opportunity to learn about financial responsibility and skills like budgeting as kids. Heck, relatively few of us are given opportunities to develop these essential life skill in adulthood either! You can take a look at our low average savings rates and high average debt to see that many of us struggle with personal finances.

This is why it’s valuable to give kids financial knowledge at a young age. Personal finance skills serve them so well in the real world. After all, making a $20 money mistake when you’re 9 could save you from making a $2,000 money mistake when you’re 29. Even at an early age, we can learn the basics of budgeting, the value of money and hard work, and how to set financial goals.

On top of that, learning about money can help boost problem-solving and math skills.

If the idea of teaching your kids about money gives you imposter syndrome, don’t worry! You don’t have to be an expert in personal finance to start teaching kids about money. Teaching another person is a great way of learning yourself. Plus, it can be a good lesson for kids to see that adults learn and grow too. So feel free to check out the free monthly budget template I have available for adults and the printable worksheets I have for kids below. Working on your budgeting worksheets together can be a great opportunity to grow closer and learn about money together.

 To Give Allowance or Not to Give Allowance?

Before starting a budget with kids, you’ll want them to have a source of income to work with. For many kids, that’s an allowance.

There’s a big debate among financial experts about allowances. Most financial experts believe that giving kids an allowance is a good idea. Buying things for kids whenever they want them doesn’t teach kids the value of money. It also doesn’t cultivate great spending habits if kids have never had to weigh the pros and cons of buying things themselves.

In contrast, if young kids are given an allowance and required to purchase some of the toys, clothes, and other items they want with that allowance, they can learn how much things cost. An allowance also provides a good lesson about saving for what you want and deferred gratification.

Where debate arises is whether to give an allowance in exchange for chores or schoolwork. Those who believe parents should give an allowance in exchange for chores or schoolwork note that it cultivates a good work ethic and shows kids that money can be earned from hard work. Those who disagree argue that parents are detracting from the spirit of community by implying that kids should only help out if they get something.

The key is to pick whatever strategy feels right for you and your children. I go over some creative options for giving an allowance in my post on financial literacy for kids. And if you’re wondering how much money to give as an allowance, some parenting experts suggest $0.50 for every year of age. Others say $1-$2 for every year of age. The right amount depends on your family’s financial situation and what feels right for your kids.

 How to Make Budgeting Fun

Focus on Goals

So how do you make budgeting fun for kids when it doesn’t sound like a party for adults either? The first step is to help kids set goals. Having savings goals makes the process of developing their own budgets much more fun and real. It might be a video game, a new toy, buying their own clothes, souvenirs for a vacation, or even a trip!

My 9-year-old nephew got excited about saving after he decided he wanted to save for a trip to Japan he plans to take when he’s a teenager. I too got excited about saving as a kid when I decided I wanted to save for a trip to Europe!

Whatever the specific goal is, it should get your child excited about saving. You can then explain to them that the basic idea of a budget is to help them plan how they want to spend and save their money so they can meet their goals. You might even use an example from their life or your own life where they spent money on something they regretted or didn’t use much. Consequently, a budget can help them think about what they really want to buy so they only use it for things that are really cool.

You may also help them think about a short- and longer-term goal. If there only goal is a vacation that takes years to save for, their interest might peter out. However, if they can get excited about a short- and long-term goal, the short-term goal can boost their confidence and excitement, while the long-term goal is the most rewarding.

Use a Visual Aid

For young children, you might use a visual aid to help get them excited and see their progress. A piggy bank or clear jars for different goals can give them a visual sense of their progress and how to divide up money. As their saving jar or piggy bank grows relative to their spending jar/piggy bank, it will highlight how far saving can get them.

Get Kids Involved in Planning

Another fun way to get kids excited about budgeting is to involve them in family vacation planning or planning a day out. For example, you could give them a budget for a day or half a day. They then plan any activities and meals using the budget you give them. You might even let them keep any extra money that’s left over.

This activity helps teach kids the basic concepts of budgeting, including weighing the benefits of different options, the value of money, and how to cut costs.

Budgeting Categories for Kids

As adults, we often have budget categories for housing, utilities, transportation, and more. We might also have multiple financial goals like buying a house and saving for retirement. For kids, it’s best to start with a simple budget.

Many caregivers find 3 budget categories for kids useful: spending, saving, and giving. For example, you might require kids to save at least 1/3 of their allowance or income and give away at least 1/3 of it. This may be especially helpful for young kids who would struggle with deferred gratification and giving without guidance.

That being said, I’m also a fan of letting kids make their own mistakes and decisions. Consequently, you might consider giving kids more leeway, especially as they get older, to make their own decisions with how they allocate their personal budget.

If you want to encourage giving, try finding an organization that children can see in person. It might be an animal shelter they can visit or a soup kitchen where they can help make meals for a couple of hours. My favorite charity as a kid was one where I got to pick out and wrap Christmas presents for kids whose family couldn’t otherwise afford them. Having in-person experience with a cause may help kids get more excited about giving away some of their money.

Kids Budgeting Worksheet

In the free budget worksheets below, I give kids space to dream and set goals. This is where they should start with the budget spreadsheet in order to get excited. Next, they can plan and document what they would like to spend their money on, how much they want to save (and for what), and how much they would like to give (and to what). The first of these budget templates is designed for younger children.

The second budget planner is for older children. While it has similar components, the style is more mature. It also allows for more detailed spending and planning.

Finally, I include a Christmas budget worksheet for kids to plan what they want to ask for and what presents they’d like to give. You can download printable versions of these as PDFs for your own personal use. 

Advanced Options for Teaching Financial Literacy

Open Savings and/or Investment Accounts for Kids

Want even more options to get kids excited about money? In a previous post, I discussed how to open an investment account for kids. You can check that out here.

Additionally, you can open a bank account for your child. A bank account offers a safe space for them to save their money. Plus, in this cash-free age, it’ll make it easier for you to transfer money to them for an allowance or chores if you choose to do so. Time magazine has a great roundup of the best bank accounts for kids. 

The Fidelity Youth Account also has tons of cool options for teens.

Introduce Kids to Budgeting with Credit

For young adults and college students, you might help get them acquainted with how to use credit cards, including budgeting to pay off credit cards each month. Having a credit card as a young adult can help build credit history and good spending habits. Plus, so many young adults get into credit card debt simply because they don’t understand how credit and interest works. Instructing them early in credit can therefore save them thousands later on.

To do this, you can make your child an authorized user of your credit card. However, make sure your credit card doesn’t have an overly restrictive age limit on authorized users first.

You can also open your child a secured credit card. This means that you or the child deposits an amount into the card. That amount then establishes the credit limit on the card. If the child stops making payments, the card issuer gets the deposited amount. However, that deposited amount is refundable if the card is still in good standing.

Finally, if your child is a college student, they can open a student credit card. Generally these cards require the child to earn income and go through a credit check.

Involve Kids in Family Budgeting Discussion

Finally, you can involve kids in money conversations in your home. For example, you could show kids your monthly income and how much goes to housing, utilities, transportation, and other monthly expenses. You can then show them how you budget for fun things like school supplies or holiday presents.

These discussions should not make kids feel scared or insecure. Instead, these discussions are about helping kids feel comfortable talking about money and showing that money is not taboo. These money conversations can also help kids feel valued and involved as a member of the family.

On top of that, family money discussions can get kids on board with saving. For example, the host of the money podcast Stacking Benjamins involved his children in a challenge to lower their utility bills relative to the prior month. Not only did they lower their utility bills, the kids became more avid about turning off lights and TVs than their dad was!

Final Thoughts on Budgeting with Kids

Cultivating money literacy at a young age is so powerful. After all, adulting is so much easier if you start learning the skills early. We can save thousands of dollars (or more!) throughout our lives by understanding how to save and spend mindfully. Plus, learning how to budget can help us set goals and work towards our dreams. There’s little that feels more rewarding then finally buying something you’ve saved up for over months or even years!

I hope you enjoyed this article and these kid’s budget worksheets. If you use any of these printable budget worksheets, let me know what you think in the comments! And please consider liking, subscribing, or sharing with others. It’s always a really big help!

Finally, remember that I am not a financial advisor. This information is solely provided for informational and entertainment purposes. Before making financial decisions, speak to a professional.