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Conversation Starters on Budgeting and Paying Yourself First
- What does it mean to budget?
- What are the two components of budgeting?
- Why is it important for income and expenses to balance?
- Is budgeting something you’d like to start doing?
- Does everyone budget?
- Can you budget things other than money?
- What does paying yourself first mean? Does it sound like fun?
- Why do you need to pay yourself first?
- What dreams or goals do you have? How can paying yourself first help you with those
dreams or goals?
- How can paying yourself first help if you have an emergency?
Conversation Tips on Budgeting and Paying Yourself First
- Explain that budgeting is a plan you use to track your income and expenses—so
that you can make sure that you have more money coming in than you are spending.
- Explain to your kids that if expenses exceed income, that is called “debt.”
- Talk bout how a budget can help them get ahead on saving, managing their money wisely,
and minimizing shortfalls and surprises to avoid going into debt.
- Make budgeting fun! Talk about how fun it is to pay yourself first to meet your
goals and achieve your dreams.
- Share your budget (if you’re comfortable doing so) with your kids so that
they can see how it is relevant to their lives, or explain how you budget your income
and expenses.
- Explain that income is the money you receive or earn, usually by working. Talk about
the many different ways your kids can earn money, like through a paper route, lemonade
stands and even garage sales! Also, help them to identify chores they can do around
your house or in your neighborhood to earn money. Chances are they’ll be able
to identify many ways to earn some money!
- Encourage your kids to think about “paying yourself first” as a means
to achieving their goals
and dreams.
- Discuss dreams and goals. If possible have them draw a picture or write down and
place with money bank to remind them to pay themselves first.
- Encourage your kids to make the decision regarding how much and how often they will
pay themselves first. Resist the urge to do the saving or decision making for them.
- Let them know that paying yourself first is as important as paying the bills.
- Talk about how you pay yourself first to reach your financial goals using resources
and tools such as direct deposit, college savings plans, IRAs, 401Ks.
- Talk about how you pay yourself first to achieve your dreams and enrich your life,
such as family vacations.
Additional Resources:
Financial Literacy
National Endowment for Financial Education
JumpStart Coalition for Personal
Financial Literacy
National Association of Federal Credit Unions
Moonjar
National Credit Union Administration
Credit Scores and Credit Usage
www.annualcreditreport.com
www.myFICO.com
Investor Education
National Association of Securities Dealers
Saving for College and Financial Aid
www.finaid.org
Savings Bond Interest Rates
www.treasurydirect.gov
Financial Calculators
TopLine Investment
Services
Books
The Millionaire Next Door
By Thomas Stanley and William Danko
Practical information on how other millionaires made their money.
The Richest Man in Babylon
By George S. Clason
Common sense ideas on the concept of paying yourself first.
A Chair for my Mother
By Vera B. Williams
Family picture book that shares a story about saving.
Content on this page may contain information from, and is used with permission by,
the National Endowment for Financial Education, the National Association of Federal
Credit Unions, Moonjar, and the JumpStart Coalition for Personal Financial Literacy.
Links to additional resources are provided for information purposes only and are
not endorsed by TopLine Federal Credit Union.
© 2007 TopLine Federal Credit Union. All rights reserved.
® Registered trademark of TopLine Federal Credit Union
Servicemark of TopLine Federal Credit Union.
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