She was really excited about this activity! We practiced counting, adding and subtracting money. She saw what looked to be a lot of money- actually wasnt all that much after the bills were paid.
First, I used a standard budget form to get ideas of what expenses would be on a budget. I drew each one out in a picture for her to color.
Once colored we glued them on to envelopes. I started with gluing one picture per envelope- but later found that I could seal the envelope shut, then cut it in half to create two envelopes from one. Frugal!
We started at the Top with the Paycheck.
Next to and under the paycheck we glued the more urgent and used financial categories (ie: Rent/Mortgage, Utilities, Car Payment/Insurance, etc)
I found a PDF file online with kids cash to print out... So we printed some money and cut it up. WARNING: This was exhausting and tedious without a paper cutter. If you dont have a paper cutter- try the dollar store for pretend cash... or maybe you have some old monopoly money laying around!
The basics of it are easy. Using the play money, count out how much money was in your paycheck/bank account. That is all the money that you have to pay for bills needing to be paid. Then using the money in the PayCheck envelope, dispense the correct amount into the envelopes of the bills that need to be paid.
For example: If your paycheck was $800.00, count out $800.00 in bills. Insert that into the paycheck envelope and put the rest away.
Now, what bills need to be paid?
How much do you have left for eating out, new shoes, birthday gifts, and movies?
This really helped my princess see that we dont have an endless amount of money. There is no money tree that I am secretly growing in the backyard. So, when she asks me for McDonalds... and I answer no because we dont have the money for McDonalds, she now understands what that means.