Can You Erase Debt and Have the Kids in Extracurricular Activities?
We all love our children and want the best for them.
But the truth is we cannot afford every activity that they want to participate in.
Whether it is playing an instrument, or participating in a sport, or going to summer horse camp, there are finite financial resources available.
Is it possible to erase debt and have the kids participating in extracurricular activities? Like any decision about money, it requires analyzing what funds are available and creating a budget around the desired activity.
1.
Assess what extracurricular activities the kids want to do.
Figure out how many activities they are interested in.
Sit down with them and discuss this too.
This is a good time to have a discussion with them that there are limited funds so they will not be able to do everything.
2.
Choose 1 or 2 activities within a 6-month period that each child can participate in.
Explain to them that they will have to help you make a decision about what activities to participate in.
3.
Start budgeting money for these activities.
Every month set aside a certain dollar amount for these activities.
4.
For the other 6-months of the year have the kids play outside with friends.
Or in their own backyard with their siblings.
This helps to reinforce the idea that you cannot and will not be paying for every activity that they want.
It is important to set these boundaries early on, especially if you have several children.
And you need to discuss these options with them so that they understand.
They do not have to know every last detail of your financial life, nor will they care to.
But rather they need to have a good idea that there is not an endless supply of money and that they will need to think hard about what it is they really want.
If you have only one child then the same rules apply.
We tend to go over board with one kid because money does not have to be divided up amongst multiple kids.
But again, even with just one child, there are limited finances, and decisions need to be made by you the parents and the child as to how those funds will be spent.
The benefit of making these decisions with the involvement of your children is that they start to understand the choices that need to be made in life when it comes to money and spending.
These are small lessons that will carry over with them to adulthood and will be remembered when they have to make their own decisions to buy houses or cars or furniture.
Instill in them early on to make good choices and they too will erase debt and build wealth for themselves when they are young adults.
But the truth is we cannot afford every activity that they want to participate in.
Whether it is playing an instrument, or participating in a sport, or going to summer horse camp, there are finite financial resources available.
Is it possible to erase debt and have the kids participating in extracurricular activities? Like any decision about money, it requires analyzing what funds are available and creating a budget around the desired activity.
1.
Assess what extracurricular activities the kids want to do.
Figure out how many activities they are interested in.
Sit down with them and discuss this too.
This is a good time to have a discussion with them that there are limited funds so they will not be able to do everything.
2.
Choose 1 or 2 activities within a 6-month period that each child can participate in.
Explain to them that they will have to help you make a decision about what activities to participate in.
3.
Start budgeting money for these activities.
Every month set aside a certain dollar amount for these activities.
4.
For the other 6-months of the year have the kids play outside with friends.
Or in their own backyard with their siblings.
This helps to reinforce the idea that you cannot and will not be paying for every activity that they want.
It is important to set these boundaries early on, especially if you have several children.
And you need to discuss these options with them so that they understand.
They do not have to know every last detail of your financial life, nor will they care to.
But rather they need to have a good idea that there is not an endless supply of money and that they will need to think hard about what it is they really want.
If you have only one child then the same rules apply.
We tend to go over board with one kid because money does not have to be divided up amongst multiple kids.
But again, even with just one child, there are limited finances, and decisions need to be made by you the parents and the child as to how those funds will be spent.
The benefit of making these decisions with the involvement of your children is that they start to understand the choices that need to be made in life when it comes to money and spending.
These are small lessons that will carry over with them to adulthood and will be remembered when they have to make their own decisions to buy houses or cars or furniture.
Instill in them early on to make good choices and they too will erase debt and build wealth for themselves when they are young adults.