>> Do you feel like every time
you turn around, your kids
are asking you for money?
( car horn honks )
>> Mom, they're here.
I need the $5!
>> It's on the table
by the door.
Have fun skating.
Be careful!
>> It's only $3.95.
Please?
>> Okay, okay.
>> I need $10, remember?
>> No, I do not remember.
>> Narrator: There are other
ways to deal with situations
like these that can help
both you and your kids,
ways that can avoid
a lot of the pestering.
Actually giving kids their own
money to spend is one way
to help them understand
what things cost,
and lets them practice
making decisions about how
to spend their money.
>> Here's the deal.
From now on, I'll be giving you
$20 every month.
And you get to decide
how to spend it.
>> Every month?
Cool!
>> Now, instead of asking me
for money every time you want
something, you'll be the one
to decide if you can afford it.
Can you handle that?
>> Yes! Totally!
>> Okay, here you go.
>> Narrator: With this plan,
you still pay for all
your child's essential needs:
housing, meals, clothing,
and sometimes even treats.
But you don't have to say
yes or no to every sudden whim.
>> This is what we call
budgeting.
>> Duh!
I have heard of budgeting, mom!
>> Well this is how
it's gonna work in this house.
First, make a list of everything
you might want to do
or get this month.
>> Hmm, movie...
>> Narrator: When you give your
kids control over money, they
will get hands-on experience
budgeting and making decisions
about how to use it responsibly.
>> Or that bracelet.
>> Last week,
you were begging for music.
Don't you want that
on your list?
>> Oh, yeah.
>> Now put down how much
each of those will cost.
Then you can start to figure out
which you really want, and
which you probably can't afford.
>> So many cool ideas
we could do.
( car horn honks )
>> Oh, I have to go.
Bye!
See you after the game.
>> Okay, have fun!
>> Narrator: And what happens
if their first attempts
at budgeting aren't entirely
successful?
>> Can I please have some money
to go to a movie with Nyika
and Aidan?
>> You know, that's supposed
to come out of your budget.
How are you doing this month?
>> I guess I'm kind of out.
>> Wow, that's gotta hurt.
>> Can't I just have the money
this time?
Please?
>> You know that's not the deal.
The deal was you get $20 a month
and manage your own budget.
I think next week is when
you'll get your next $20.
>> But Nyika and Aidan!
>> I know it's tough.
But that's what you agreed to.
You know, it's your job
to manage that budget.
Maybe this time you could think
about having your girlfriends
over for a movie.
>> Narrator: Sooner or later,
everyone makes mistakes
managing their money,
but preferably not big mistakes.
Letting your kids learn from
their mistakes early in life,
before they're out on their own,
will go a long way to help them
make the right choices
and be financially responsible,
and avoid those big mistakes.