Your Family Vacation – A Great Opportunity to Teach Kids How to Budget

Family vacations are a great way to strengthen relationships and build lasting memories. Of course, family vacations can also be quite stressful. One of the more anxiety provoking aspects of any vacation is the amount of money it takes to transport, feed, shelter and entertain the entire family. Typically kids are completely unaware of the expenses involved … everything from obvious costs like hotel bills, restaurants and gas to hidden costs like auto insurance quotes. Parents on the other hand, are acutely aware of every dollar spent. A great way to get everyone on the same page is by viewing your family vacation as an opportunity to teach kids how to budget.

How to Use Your Family Vacation to Teach Kids Basic Budgeting Skills:

1.    Purchase some play money, both bills and coins. Give the kids the amount of money you have budgeted to spend on the vacation. Then, talk as a family about the various expenses: transportation, food, shelter and entertainment. Have one parent, or an older child, write the list of expenses down on a note pad. Let the kids “pay” for these expenses with their play money. Discuss how to use what’s left over. Or, if the kids run out of money, talk about what items could be removed or reduced.

2.    Bring the play money on the trip. Spend time each evening as a family to talk about how much money you began the day with, what you spent it on and how much is left. Talk about the amount of money available for the next day and make choices about what activities the family can afford.

3.    You can adapt the same concept with older kids and teens by using a notepad or a blank checkbook register. Write the amount of money budgeted for the vacation at the top and let the kids record each “withdrawal” or expense. Talk to the kids about the money that was spent. Ask them if they have any ideas about how to stretch the money that’s remaining.

4.    Give kids a certain amount of real money to purchase souvenirs with.

5.    Or, let kids earn their spending money before the vacation by posting extra chores you’d be willing to pay them for. You might also encourage them to ask about odd jobs they could do around your neighborhood, church, synagogue or community center.

Regardless of the approach you choose, a family vacation is a great way to teach kids some basic budgeting skills.