Home School Heartbeat Radio Program

Mike Smith:
We have Chuck Bentley with us again today. Chuck, would you give us some suggestions on how we can teach the complex subject of budgeting to our children?

Chuck Bentley:
Absolutely, Mike. We started with a very simple concept—we put a 3-ring binder together with clear zippered envelopes inside that binder, and then we established four categories for our children. The first one was to give, the second category was to save, and then to spend, and then an investment category. And under each one of those, you can get a little more detailed or complex if you’d like, but those are the basics.

And then every money that the children earned had to be divided into those envelopes. And we even required our children to put money they received in gifts into those envelopes, so that they would be a steward of all those dollars. And then, over time, we slowly introduced to them the idea that they were responsible for purchasing some of their needs as well as their wants. We started with the basics: 10% giving, 10% saving, 10% in investing, and 70% left over for spending.

Mike:
Well, that’s outstanding, that’s such great advice and practical, Chuck, thank you so much for being with us today! And until next time, I’m Mike Smith.