Sweet Frugal Life

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How To Teach Kids About Money

By: Sweet Frugal Life11 Comments

Teaching kids about finances.

Teaching my kids how to be smart with money has always been very important to me as a parent.   I believe if they can learn how to handle money when they are young, then they will be much more successful as adults.  Honestly, I would rather them make money mistakes with $5 than make the mistakes with $5,000 (ya know?!?!).  But, it can be hard to know exactly just how to teach kids about money.

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Here are a few things that have helped me to teach my kids about money:

  • Money Confident Kids Website.  This website is full of FREE resources, games, printables and activities to help kids understand finances.  I have found so many helpful information here.
  • Object Lessons.  A few years ago we did this fun object lesson with our kids.  It was a huge success and I loved watching the wheels turning in my kids head as we counted out the money, it’s something I hope to try again one day!

 

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  • Smart Money Smart Kids: Raising the Next Generation to Win with Money by Rachel Cruze and Dave Ramsey.  This book is one of my favorite books I have ever read.  It outlines exactly what to do to give your kids the knowledge they need about money.  I highly recommend it to ALL parents.
  • At Home Money System:  The most successful thing I have done to help my kids learn about money is through our simple money system.  Having an at home money system gives kids a hands on approach to budgeting, saving and spending.  I am sharing all of the nitty gritty details with you about this below!

Allowance

Yes.  My kids get an allowance.  No, they are not spoiled.

I know, I know!  Allowance kindof has a bad rap, and a lot of people don’t understand why we use one.

I get it!  Many people think allowance is a handout, and do not want their kids to grow up  spoiled or entitled.

So why then would I give my kids an allowance???  Well, I will tell you!

I believe that there is a right way and a wrong way to use an allowance.  If done correctly an allowance can be a wonderful TOOL in helping kids learn how to spend wisely.

kids and allowance

Here’s the thing…..I received an allowance as a child….but, I was expected to buy my own clothes, make-up, shoes, extra curricular activities, outings with friends, etc.

Honestly, I grew up to be very responsible with money, I did not become spoiled, entitled or lazy, I did not expect a free handout once I became an adult, and I believe a big part of this is because I was given an allowance and learned how to manage my money at a young age.

I learned early in life how to budget and save and spend wisely.  Instead of asking my parents to buy me a brand new pair of name brand shoes and being disappointed when they told me it was to much money; I was given a set amount of money and I learned to decide for MYSELF that the name brand shoes were to much money and I would rather shop around for a better deal.  I am so grateful to my parents for helping me to learn this lesson.

Using an Allowance as a Tool

So, how do we use allowance as a tool?  I will share with you what has worked for us, and hopefully it will work for you too!

Once our kids turn eight years old they start receiving a small allowance of $5 a month.  This is what I call the “practice allowance.”  The $5 is meant to help them get into the habit of saving and tithing.

We teach our kids to save 20% and tithe 10% to our church.  The rest of their allowance money can be used for spending.

This spending money is usually spent on buying small treats or toys, birthday presents for friends and family or to save up for something a little larger.  (my son is currently saving for a lego set!).

At age 13 the kids graduate from “practice allowance” to a bigger allowance.  They now begin to receive $25/month and are responsible for buying more of their own clothes and activities.

Once they turn 15 the amount will increase again, along with more responsibilities.  My goal is to slowly teach them how to manage their own money and provide for themselves.

The way I see it, I could either pay for their clothes myself and my kids will learn that mom buys clothes.  OR, I could give them an allowance, they can buy their own clothes, and they learn how to manage money and to decide between needs and wants.  Either way the money still comes out of my pocket.

I have been so proud watching my kids manage their allowance.  They save WELL more than the expected 20%, and have been so responsible with their money.

My oldest has learned to shop at discounted clothing stores; such as Ross, TJ Maxx, Uptown Cheapskate, etc.  Instead of complaining to ME when something costs to much, she gets to make that decision for herself.  I honestly wouldn’t parent any other way.

How Does It Work?

Visual learning works great for kids!  So, I have bought my kids these savings tins to help them practice saving, spending and tithing.

I couldn’t find the exact savings banks that we bought for our kids, but I did find a similar version on Amazon here!

These tins help to make saving money a little more fun for the kids.  My kids love that they have their own key to lock up their very own personal bank.

You do NOT need to spend money on savings banks though.  Feel free to set your kids up with three envelopes or three jars, anything that will store money will work!

The very first things our kids do after receiving their allowance is go get their savings bank and tithe 10% to our church, save at LEAST 20% for their future, such as college and a car.

I pay them using change to make it easier to tithe and save.  If it’s time for their monthly $5 allowance then I will give them 4 one dollar bills and 4 quarters.  They know that two quarters go into their tithing bank, one dollar in their savings and the rest into spending.

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Lessons Learned

The lessons I have seen my kids learn since implementing these methods have been HUGE and absolutely PRICELESS.  A few of the things I have watched them learn are:

1. Their future is important to them

Kids care about their future.  If we give them the opportunity to care, they will!

I have been so impressed with my kids as I’ve watched them save MUCH more than the required 20%.  They understand that they will be responsible for a lot of their future expenses and are very motivated to save for those moments.

We talk often about their future and the expenses coming.  They understand that they will need to buy a car, help pay for college and provide for themselves as adults.  Because of this conversation, they work hard to save and plan ahead.

2.  Some things are just not worth spending money on

Each of the kids have had moments in the store when they have fell in love with a toy.  I always remind them that they have their own money to spend and if they want to buy it they can.

Once I give them the choice to buy it themselves with their own money, they pause to really think about this decision.  Some times, they use their money and buy what they want.  Other times, they decide it is not worth spending money on.

I love watching them make these choices.  They learn so much more by making the decision themselves, rather than me saying it’s not worth the money.

3.  The harder they work the more money they will have

You might be wondering about this section…..yes.  My kids are paid an allowance (not connected to chores).  They also know that money comes from working hard.

How does this work?  I will explain it to you!

My kids do not get paid for the majority of their household chores.  I believe that helping keep the house clean is just part of being in a family and should not receive payment.

However, I do pay the kids for what we call “extra chores.”  These extra chores are chores above the basic house cleaning.  My oldest gets paid for mowing the lawn and my youngest gets paid for feeding the dog.

Whenever they want to earn extra money, they can ask me for an extra chore, and I will give them one.

4.  It feels good to give.

Our kids are taught that paying a tithe to our church is a way to help and bless others who might not have much money.  We also believe that our Heavenly Father blessed us with our wealth, and will bless us by giving back to Him and His church.

Instilling this into our kids have been a huge blessing.  I love watching them give to others and to our church.

how can i teach my kids to spend money wisely

In Conclusion

These are the things that have worked well in my family.  I have loved watching my kids make mistakes with money and then learn from those mistakes.  It’s not always easy to see them fail….but the lessons they learn afterwards are worth it!

What works for one family won’t work for all families.  Try a few of these ideas out, find what works for your family.  Your kids will thank you when they are older, I promise!

 

Related Articles:

What I have learned about living a sweet and frugal life on ONE income

Money Lessons for Kids: The night we taught our kids the TRUTH about money

The Envelope Money System: A Beginners Guide

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I hope this helps you learn how to teach kids about money.

Fix Your Budget After a Day of Impulse Shopping

By: Sweet Frugal Life11 Comments

You can fix your impulse shopping mistakes!

It happens to every single person…..and it usually happens more than once.  Everyone goes through moments of weakness when they throw all their common sense out the window, ignores their budget, and spends a day impulse shopping.

It actually happened to me just last week.  Yep.  You read that right!  Miss Sweet Frugal Life ignored her own advice and didn’t stick to her budget.  (not perfect!)

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Let me start at the beginning.

I have been slowly trying to decorate my music room.  When we moved into our house three years ago this room sat completely empty.  We have had to buy all new furnishings, and it has been expensive.

But, after years of buying a few pieces every month, I could finally see the finish line!  All I needed was a few items for the walls and then it would be done!  (yaaay!)

We did everything “by the book.”  Budgeted $50 for two frames from Hobby Lobby, stuffed my cash envelopes with the exact amount.  And I went shopping.

After a quick browse through the clearance section, I walked straight back to the frames.  Unfortunately, while on my way I walked past a picture that stopped me in my tracks.

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It was perfect and EXACTLY what I needed to finish decorating my music room.  I honestly thought that this picture was made for my house.  The colors and the style was just what I wanted and I already knew which wall I would hang it on.

I KNEW that I shouldn’t buy it, I understand Spending Triggers and I teach people daily how to avoid them.  So, I stood in the exact same spot at Hobby Lobby for ten minutes while an internal debate ensued in my head.

I knew I shouldn’t buy it, I only had enough money in my cash envelope to purchase the two frames, and I REALLY wanted the frames.

The Sad, Truthful Results

You all know how the story ends.  I let out a sigh, threw caution to the wind, and bought that picture using my credit card.

I’m not proud of this moment.  I sure wish I could tell all of you that I’m perfect ALL of the time and never impulse shop!  But, that just would not be true.  I’m just a regular lady trying my best….and sometimes that means failure.

But, you know what!  You can recover from impulse shopping.  There are things you can do to fix your mistakes.

Here are a few ways you can recover from impulse shopping.

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Give it a Day

Do not take off any tags or packaging for at least one day.  Set the item somewhere in your house where you will look at it often.  This will give you time to decide if you TRULY TRULY want to keep what you bought.

Most of the time when I do this exercise I learn quickly that I don’t want the item as much as I thought I did while at the store.  The guilt usually gets the best of me and I decide to take it back to the store.

Other times, such as the case of this picture, I decide that I do really want to keep it and I am pleased with the purchase.

Return It

When the guilt is more than you can handle you should take whatever you bought back to the store and return it.  You can return just about anything, and it’s always super quick and easy to do, just make sure to always keep your receipts for a smoother process.

Whenever I return an impulse buy I immediately feel the guilt being lifted from me.  I have NEVER regretted a return….but I HAVE regretted many purchases….think about it.

Sell Something

If you decide you DO want to keep your purchase, which is fine, you will need to come up with extra money to cover the cost.  One of the quickest ways to earn extra money is to sell something.  If you’re stumped on what to sale, check out this article for a few ideas.

This is what I decided to do last week, I had a lamp in my music room that I liked, but I just hadn’t been loving.  I had been contemplating getting rid of it for months and knew that this was the perfect time to do so.  I quickly listed the lamp on Facebook Marketplace and was able to earn $40 from it!  This easily covered the cost of the picture (plus an extra $10)!

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Adjust Your Budget

If you want to keep your impulse buy, and don’t want to sell anything, than you will need to find some extra money within your budget.

It is perfectly acceptable to move money around in your budget from time to time.  Try not to make a habit of it, but occasionally will be fine.

Take a good look at your budget and see if there is anything you can adjust to cover the costs of what you bought.  Could you cancel your plans to go out to dinner that night?  Or pass on a new pair of shoes?  Find something (anything!) you can do without for this month and use that money to cover the cost of your purchase.

Side Hustle

If the amount you spent was considerably high you might want to consider getting a temporary (or permanent even!) side hustle.  Is their a skill you have that could bring in a little extra money?

Perhaps making and selling a craft?  Babysit a child?  Dog walk?  Clean houses?   I truly believe EVERYONE has MULTIPLE talents they can offer to the world to bring in extra cash.  Make a list of your talents and choose one or two to turn into a side hustle.

In Conclusion

Honestly, I’m glad I came across this picture.  It completed our music room and it’s a purchase I am so happy with!

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BUT…..I should have waited to buy it until we budgeted the money for it.  I made a mistake!  However, I learned from the mistake!  And next time I will not make the same mistake again.

Budgeting, frugal living is not about perfection….it’s about PROGRESS!  Two steps forward, one step back is ALWAYS better than standing still.

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You might be interested in a few of my other articles:

Budgeting for Beginners: FAQ

A Financial Tale of Two Sisters

What I have learned about living a sweet and frugal life on ONE income

Don’t stress next time you impulse shop, you can fix it!

How to Make a Zero Based Budget

By: Sweet Frugal Lifecomment

How to set up a zero based budget, for beginners.

I have been getting so many questions lately about how to set up a successful budget.  I decided it was about time I talk about this important subject!  Today, I will be teaching you exactly what you need to do to set up and maintain a zero based budget.

What is a zero based budget?

A zero based budget is a form of budgeting where you budget all of your expenses to equal the same amount as your income.  The simple formula is:  Income – Expenses = 0.

Why do I need a zero based budget?

This form of budgeting forces you to think about every single dollar.  When you have to scrutinize exactly where, how and when to spend each of your hard earned dollars you will look at your spending differently.  A zero based budget will keep you on track with your money goals and encourage you to spend less, while saving more.

how to make a zero based budget

How to set up a successful budget:

Setting up a zero based budget is really easy once you learn the basic steps.

Step 1:  Write down your income.

Write down all the income you expect to receive over the next month.  Don’t forget to include any money you might receive from side hustles!

Need a budgeting worksheet?  Download one for free by clicking the link below!

Step 2:  Write down all monthly expenses.

This is the most time consuming part of making a zero based budget, but don’t let that scare you away!  You need to write down every expense you will be making over this next month.  And when I say everything…I really mean everything!  That $2 shake you get on your way home from work???  Yeah, include that in your expenses.

Fixed Expenses

First, write down all of your “fixed expenses.”  A fixed expense are the bills that cost the same amount every month.  The most common fixed expenses you should include in your budget are:

Variable Expenses

Next, you will write down all of the variable expenses you will have throughout the month.  Variable expenses are the items you spend money on regularly, but the amount changes month to month.  Here are a few of the most common variable expenses:

  • Groceries
  • Entertainment
  • Eating out
  • Fuel
  • Clothing
  • Hair care

Seasonal Expenses

Now, write down all seasonal expenses.  Seasonal expenses are those expenses you will have to pay sometime throughout the year, but usually not every month.  Don’t forget these seasonal expenses in your budget:

  • Home repairs
  • Christmas
  • Birthdays
  • Tuition
  • Dental/Medical work
  • Vacation
  • Property taxes
  • HOA fees

It’s so important to plan ahead for these expenses.  If you start saving for them now, you will already have the money set aside when the time comes.

The best way to plan for seasonal expenses in advance is through sinking funds.  A sinking fund is like a savings account within your budget.  You will add to these funds each month, and then when that home expense comes, or your HOA is due, you will already have the money saved for it.  You can learn all the nitty gritty about sinking funds here.

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Savings

Don’t forget to include setting aside money for saving.  I highly encourage you to always be saving a little bit here and there.  You might want to be saving for retirement, a rainy day, or college.  Don’t forget to include these in your monthly expenses.

Step 3:  Subtract Your Income from Expenses To Equal Zero

Once all of your income and expenses have been written down you will want to subtract the income from your expenses.  The goal is to get the number to equal zero.  This might take some trial and error, but you will find what works for you.

If your expenses are higher than your income, try to rework your budget and find areas to cut.  Here are 5 things we cut from our budget to save thousands each year.  Don’t think you have anything left to cut?  Check out these ways to cut your budget when you don’t have anything to cut.

If you find your expenses are lower than your income, this is great, but you will still need to keep working the budget.  Every dollar in your budget needs a job, don’t leave any of them sitting around with no where to go!  If this is the case for you, find a category within your budget for those extra dollars.  Add more money to a category, save the extra for a rainy day, or use it to pay more towards your debt.

Step 4:  Track Your Spending

Now that your budget is ready to go, it’s time to track your spending!  Throughout the month you will need to write down everything that you buy.  Yes, everything!

Tracking your spending is important because it helps you see if you are staying within your budget….or if you are overspending in certain categories.  I have also found that when I know I have to write down my spending….I think twice before spending!

Step 5:  Check In With Your Budget

You must be checking in with your budget regularly.  I recommend taking a quick glance at your budget at least once every day.  Get into the habit of checking your budget before making any purchase.  This helps you be sure that you have the money available.

Have a more thorough budget check in once or twice a week.  This thorough check in will be the time to look through your budget and make sure your spending is right on track.  Your weekly check in should take about 15-30 minutes.

Step 6:  Close Out the Budget

It is now time to close out the budget!  This should be done at the end of each month (or budgeting period.)

Closing out the budget simply means to make sure all spending is accounted for.  You will look through your spending tracker, fill out your budget to report how much you spent in each category, and make adjustments as needed.

This is an important step to learn more about your spending habits.  If you find yourself continually going over budget in groceries, you might decide you need more money in that category.  Perhaps you notice a lot of overspending on clothing each month, you can use this knowledge to make a plan to spend less.  Thrift shopping or using cash envelopes are both great ways to keep the clothing budget down!

At the end of each month you will rework each of the 5 budgeting steps.  This is the time to rewrite your budget and assess your needs and living situation.  Your budget will change from time to time, and that is necessary!

Be willing to work through these changes and put in the work to keep your budget properly maintained.

The goal is to have the amount spent equal the amount budgeted.  Through time and adjustments, you will find what works best for you!

how to make a budget - what is a zero based budget

Budgeting FAQ

How much should I put into each budget category?

I like to follow Dave Ramsey’s advice when it comes to budget categories.  You can find how much he recommends in each category here.  We don’t follow these suggestions completely, but they make a great guideline to help us budget.

What should I do if I go over budget?

It happens to all of us!  Don’t get discouraged if (and when!) you find yourself in this situation.  There are a few things you can do to fix your budget.

  1. Use money from another category.  If you have already overspent in groceries, but still have money left in your entertainment category, you can use that entertainment money to cover the cost of your extra grocery spending.  This will mean less entertainment for the month, but it might be necessary to keep your budget on track.
  2. Sell something.  Look for items in your house that you can sell right now to earn some money.  I highly believe everyone has a few things they could make money from.  This extra cash can be applied to the area you overspent in.
  3. Side hustle.  Try to find a way to earn extra money to cover your extra expenses.  Need a few ideas?  I have a great side hustle list here.

The most important thing is that you find a way to cover that overspending.  Do not pull out a credit card.  You can fix this!

What should I do if I go under budget?

The very first thing you should do if you go under budget is give yourself a big ‘ol pat on the back.  Be proud!  That’s great!

But.  We don’t want to leave that hard earned money just sitting around.  Give it a job!

Here are a few suggestions (in order of priorities) for your extra cash:

  1. Pay extra towards your debt.
  2. Build up your emergency fund.
  3. Put it in one of your sinking funds.  Perhaps a vacation or car you might be saving for.
  4. Reward yourself.  Treat yourself to something fun!  It’s ok to use that extra cash on you!

How can I make checking my budget a habit?

Habits are so hard to form!  If I’m being completely honest with you, it took us years (yes, years) to form a good budgeting habit.  I hope it doesn’t take as long for you!  Here are a few suggestions to make budgeting a habit:

  • Set an alarm on your phone.  This alarm will be your daily reminder to check your budget and stay on track.
  • Schedule it.  Write “budget” write into your daily planner/schedule.  Set aside a time each week that is your budget time, and no matter what stick to this schedule.  Sunday evenings are a quiet time in our house, so we use it to look over the budget.

 

It’s now time for you to make your zero based budget!

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How to Freeze Pancakes

By: Sweet Frugal Life1 Comment

Tips to store pancakes in the freezer.

Trying to get my three kids fed, ready, and out the door every morning can get a little hectic.  One of my favorite hacks to make these mornings a little easier was to start making breakfast ahead of time to store in the freezer.  One of our favorite freezer breakfast meal are these pancakes.  They are so easy to make and freeze!  Today I am going to share everything you need to know about how to freeze pancakes.  You will love doing this!!  Promise!

This idea really started because I’m trying to be like my mom.  I really think my mom was supermom.  Granted, I didn’t think that when I was growing up….but now that I have become a mom myself, I am able to look back and realize just how hard she worked for our family.

I feel fairly confident when I say that many of you are supermoms as well.  You wake up early, spend all day serving your family, and go to bed late worrying about your kids.  My goal is to be supermom!  I fail about everyday, but I continue to try!

One of the many “supermom” traits from my mom was her willingness to make us a hot breakfast every single morning before school.  I knew that when I walked upstairs after getting dressed the table would be set, and a fresh warm breakfast would be served.  I TRY to do the same with my kids….but I REALLY struggle some mornings to find the energy and motivation.

I’ve recently started batch cooking many breakfast items and stocking up my freezer for quick breakfasts for my kids before they head out the door for school.  I want to share how you can do that too!

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How to Freeze Pancakes

To freeze pancakes, you first have to make the pancakes!  I love this pancake recipe, and I think your family will love it too!

Once you are done making your pancakes, including cooking on the griddle, let them cool completely.

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After they are cooled place the pancakes on a cookie sheet in a single layer.  Don’t let any of the sides touch each other.

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Put the cookie sheet into your freezer to allow your pancakes to flash freeze, this takes about 1 hour.

While the pancakes are in the freezer you can prepare your freezer bags.  This is easy!  Just get out a freezer bag and write “Pancakes” and the date on one side.  Done and done!

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Check your pancakes in the freezer after an hour.  Once they are frozen completely you can take the pancakes off of the cookie sheets and place them all into your freezer bag.  Feel free to fill the bag as full as you need to!  

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Stick the bag of pancakes in the freezer and you are done!  Yay!  Easy peasy!

How To Use Your Frozen Pancakes

Using your frozen pancakes are about as easy as freezing them!

When you are ready to use the pancakes, simply take out the number of pancakes you need and microwave them until they are warm, about 1 minute.  That’s all!  Now serve the warm pancakes with your favorite toppings!

These are also easy for the kids to get out of the freezer themselves!  If you ever have a busy morning, your older kids can get the pancakes out by themselves!  Yay for independence!

Related Articles:

How to Freeze Raspberries

Freezer Chicken Recipes and How to Freeze Bulk Chicken

8 Foods You Should Freeze in an Ice Cube Tray

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I hope this article helped you to learn how to freeze pancakes.

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