Have you ever gone out on a family outing and spent more money than you should because you got caught up in the excitement, only to regret it later? I know I have, especially with kids in tow. With so many shiny objects and new things to try, it’s easy to want to experience it all. Plus, with kids constantly asking for merchandise or treats, the costs can quickly add up.

I’ve found a technique that helps minimise overspending on kids’ outings and stops the guilt afterwards. It’s simple: I set a budget for the kids for the event, give them the money in cash (so they can see it disappearing), and let them manage their own budget.

Earlier this year, we went to the Adelaide Fringe Festival. My husband and I paid for the Mario the Magician show and dinner. We gave each child a $20 budget to use as they wanted (rides, merch, dessert, drinks etc) before we arrived and clearly set expectations. Both kids decided to take additional money from their splurge jar (read about what the splurge jar is here).

During the fringe, I knew I would have gotten caught up and spent more than I should have (I was tempted to spend more while I was there and had to resist).

With their own budgets, the kids felt empowered. They pulled their money together, deciding what to do. They went on rides, shared a dessert, played games and thoroughly enjoyed themselves. Jake even got chosen to help perform in a show! It was a great night, and we stayed within budget.

I’ve been doing this for years with the kids, starting from when my son was three years old. We even do this on holidays, giving them a budget for souvenirs, treats, and extras they manage the money themselves.

Sometimes, the kids choose not to spend their money at the event, saving it for something else they prefer. My daughter once packed her own lollies and a drink bottle, so she didn’t have to use her money, later buying a lip gloss at Mecca instead. My son has opted for trading cards instead of dessert, which is a win for me—less sweets!

Benefits of Setting Kids a Budget

The best part about this method is how empowered and significant the kids feel. They learn that they are capable of managing money giving them personal power, fostering independence and control over their lives.

This method not only helps manage spending during family outings but also instills lifelong financial habits in your children. By giving them control over their budget and the responsibility to make spending decisions, they learn the value of money and the importance of prioritising needs over wants. As they grow into adults, these early lessons in budgeting and mindful spending will equip them with the skills to avoid financial pitfalls, ensuring they don’t get caught up in spending money they don’t have on things they don’t need. This practical experience will pave the way for a more financially secure and responsible future.

Try this approach and watch your kids love it. The key is for you not to get caught up in the moment and spend extra on the kids. Set clear expectations and stick to them.

In conclusion, giving your kids a budget and letting them manage it can save you money and teach them valuable financial lessons. It’s a win-win situation that makes outings more enjoyable and less stressful for everyone involved.

We’d love to hear your thoughts and experiences! Have you tried a similar approach with your family outings? How do you manage spending when you’re out and about with the kids? Leave a comment below and share your tips and stories!

Frequently Asked Questions

How much budget should I give the kids?

That is really up to you. Usually, I look at what the kids may buy and where we are going. For the Fringe, I had already bought show tickets and was paying for dinner. I knew rides were about $12, and they could get a dessert for $8, hence the $20 budget. Sometimes, having less amazes me how creative the kids can get. They’ve asked for discounts (and received them), pooled money together or saved the money for something they prefer instead of overpriced merchandise.

If I had said I was paying for dessert or rides, they would have just gone with it, rather than deciding if they really wanted it.