With a budget in place, the person doing the shopping then has the job to stick to that set amount.
Mr. Lemay recalls one back-to-school shopping experience when his sister spent her $50 budget on one pair of Jordache jeans. She had to wait until Christmas for new clothes, whereas he spread out his back-to-school budget to buy more items that were important on his list.
To avoid a similar single-purchase budget, Wollan suggests giving your child financial freedom, but with more details. Along with the dollar amount of the budget, instruct your child to buy a certain number of pants, shirts, etc.
“Experiencing the results of a choice is a terrific money-management experience,” she says. Yet, “if you give your child freedom to make choices and you don’t like the choices, the best thing is to let them live with it anyway.”
