My husband and I have a checking account. Thanks to online banking, our need for checks has declined quite a bit but we still keep a record of our financial transactions in the account ledger. This is key part of financial success so we thought it was important to teach our kids how to track their spending as well.
My children often get Amazon and iTunes gift cards for special occasions. When I enter the redemption codes from these cards online, the funds load into my account. $30 can take some time to spend when buying one 99-cent app or $4.00 e-book at a time. The kids never spent the full amount right away. I found that it was easy to loose track of what money was theirs when I am making purchases from the same account.
I needed a way to keep track of their purchases.
Not wanting to steal my kid’s money, I gave them each an old checking ledger so they could keep a record of their purchases.
The opening balance is the amount on the card they were given. Each time they make a purchase the amount is added to the withdrawal column and subtracted from the balance. If they get a new card, it’s recorded it in the deposit column.
It worked so well for us that my little ones have begun tracking all of their spending choices this way. Doing this helps them understand exactly where their money has gone and how easily it is spent.
Try it with your kids.
Don’t have a spare checking ledger lying around? Download a free spending record HERE.
Do you keep track of your spending?
This post is apart of a 31 Day Series on Kids & Money.
Yesterday's Post: Day 14 – Wise Spending