The two keys
to budgeting are (a) negotiating and (b) preparing your plan (budget) in the
quiet of your home and not when you are making a purchase.
(a)
I believe every
person that your income supports should be given spending guidelines and should
be able to negotiate, based on facts, the guidelines. When my two daughter’s expenses
were a part of my budget, they are now 42 & 40, they knew they could
negotiate with me. For example, when they were in college, I gave the $50 month
for spending money to purchase essentials they would have normally found at
home, like tissues, toothpaste, or toilet paper. The understanding was that if
they needed more than the allotted $50, and they could show me proof, I would
increase the amount of their spending money. There are three other examples I
can share. When they were going to a prom, and I thought it important for them
to look nice at the prom, I paid 100%. When they wanted to buy a high school
jacket, we negotiated that I would pay 50%. On the yearbooks, I only paid for
their senior yearbook.
My daughters
were provided a clothing allowance until they graduated from college. They
charged purchases on their personal credit card, with a reasonable spending
limit, and I would pay the credit card bill until they graduated. Then they got
a new credit card for which they were totally responsible. When at school, they
would call me when they were going clothing shopping and ask me “How much money
do I have in my clothing allowance?” Knowing that, they could make purchases
within their allotted and negotiated budget allowance or repay me for any
overage from their funds.
These are just
a few examples to help you understand the concept. Even younger children can be
taught this concept. If you can only afford one after school activity, like
soccer, cheering, dance, etc., your child can be part of the process to select
the one activity.
(b)
Preparation
of a budget is a serious matter and thus should done in a quiet environment
with paper and calculator or computer. When you go to make a purchase, you
should know how much money you have in the category where that money is listed.
Purchasing decisions should not be made emotionally in a store, but based on
what you have previously decided or previously negotiated. If you budget does
not have enough money set aside, the purchase should not be made. NOTE: Budgets
can always be adjusted, but not in the store.