Using the Pizza Method to Teach Kids Budgeting Skills

Teaching your kids about money may sound about interesting to you as watching paint dry, but it doesn’t have to be. There are lots of fun ways to teach them about money without them even realizing it’s a lesson.

 

For example, you can use the pizza method to teach them about budgeting, and you get to eat pizza while doing it.

 

Start with a whole pizza, which represents a monthly budget. If it helps visually, use toppings to create a number (like $50). Keep it simple for kids.

 

Explain to your kids that each slice of the pizza is a different expense or expense category, like water, electricity, food, rent/mortgage, etc. You can also use toppings to put numbers on each piece.

 

As the family eats those pieces, be sure the kids understand how that represents money being spent. With each piece consumed, the amount you have left to spend (or eat) is getting smaller. Just like the pizza has to last the entire meal and fill everyone up, your money has to last all month, and you need enough for all of your expenses.

 

With older kids, consider making the slices different sizes to better represent each section of your budget and how much of your budget each category consumes. You might even put numbers on each slice that add up to more than the number on the whole pizza. This indicates you have more expenses than money to spend. Give your kids the opportunity to decide where expenses should be cut.

 

Teaching kids about budgeting puts them in control of their money from a young age and helps them understand money is not unlimited. Kids who learn this lesson at a young age are less likely to have excessive debt later in life.