When Should We Teach Our Children About Balancing A Checkbook

Balancing a checkbook can be quite a challenge for some adults, let alone children. However, there are ways in which we can teach this process. When should we teach our children about balancing a checkbook?

Surprisingly, most experts agree that parents can teach children to balance a checkbook starting from the 4th grade. They cite this example: Assuming you pay for groceries with a check, upon returning home you can give the child a piece of paper (to use as a worksheet) and ask the child to make two columns: the left column would represent money spent and the right column would reflect the balance from the checkbook.

Next, ask them to subtract the amount of money spent from the balance. You can show them what the balance looks like in the checkbook. Then inquire how much of the balance would be left. This can be a regular undertaking. Any time you go shopping and pay by check, you can ask your child to write down the amount spent in the appropriate column and subtract it from the prior balance as listed on their worksheet. After a certain amount of time, depending upon how fast your child grasps the process, you can then let them know that after the next shopping trip you will give them your checkbook and have them subtract what you’ve spent from the balance.

The next step is to teach them about depositing money in the bank and how it is shown in the checkbook. Now that they know how to subtract from the balance, you can give them another worksheet and ask them to make three columns. On the left side would be the outgoing expenditures, the second column would be for deposits, and the third column would again show the running balance. Take your child with you to the bank. Let them observe how you deposit money and show them the receipt. When you arrive home, have them sit down and record the amount of the deposit in the second column. Keep in mind they should have the balance of the checkbook already reflected on the worksheet. Now ask them to add the deposited money from the second column to the balance in the third column. Ask them how much money is now in your checking account. Once they give you the amount, record it in your checkbook as they look on.

The final stage is combining all three processes. On your next outing, before you go to the grocery store stop at the bank to make a deposit. Now you can give the deposit slip to your child along with the receipt from the supermarket. Ask your child to take the worksheet out and record both receipts. When he or she has finished recording the information, ask them to let you know how much money you have in your checkbook. Do the same with your checkbook. Do you both come up with the same balance? If so, you have successfully taught your child how to balance a checkbook. You both deserve a pat on the back for a job well done!