Monthly Budget for Homeschool Moms

One of my favorite books is Atomic Habits. I highly recommend it for anyone looking to build a new habit and make it stick, whether it’s physical, educational, spiritual, or financial. Developing a monthly budget for homeschool families doesn’t have to be complicated. Follow these steps to simplify the process:

Reduce stress by providing a clear picture of your finances.
Align your spending with family priorities and homeschooling needs.
Simplify money management with effective tools and methods.

By dedicating time each month to review and adjust your budget, you can stay proactive and financially empowered.

Why a Monthly Budget is Essential for Homeschooling Moms

We’ve all been through those seasons when Uncle Murphy (Murphy’s Law) moves into your guest bedroom and floods the basement. Financial challenges and surprises happen. Regularly reviewing your budget can help you:

Adapt to fluctuating expenses: As homeschooling needs change, so might your spending patterns. Curriculum costs usually increase, as well as co-op and extra-curricular expenses. Monthly reviews keep you agile.
Align with family goals: Whether saving for curriculum, field trips, or a family vacation, your budget ensures you’re on track.
Avoid surprises: Identifying upcoming expenses prevents financial stress. Don’t let that science fair cost or field trip come out of emergency savings!

How to Set Up a Monthly Budgeting Routine

One of my favorite books is Atomic Habits. I highly recommend it for anyone wanting to create a new habit and stick with it, whether its physical, educational, spiritual, or financial. Creating a monthly budgeting habit doesn’t have to be complicated. Follow these steps to simplify the process:

Choose a Consistent Review Trigger: This could be the same date each month, or it could be when you get paid. Find the trigger that best suites you for the habit to stick.
Keep It Simple: Focus on key categories—income, giving, saving, investment, bills, and expenses.
Track Key Areas: Ensure you monitor:
- Savings and emergency funds: Build a safety net for unexpected expenses. A normal emergency fund is usually 3-6 months of expenses. If you’re in the process of paying off debt, you may want a smaller emergency savings to help snowball your debt payoff program.
- Adjustments for fluctuations: Adjust your budget to reflect new or irregular costs. If you’re not sure what the month is going to bring, have a “misc” category. Just be sure to not let your “misc” category take over your budget each month. This should not be a large category and should be for the purpose of not dipping into emergency savings for the non-emergency things you forgot about at the beginning of the month.
Involve Your Partner: Accountability from a spouse or trusted family member helps maintain consistency.

My Favorite Budgeting Tools

The right tools make all the difference. Here are my recommendations:

Excel Monthly Budget Template on Etsy: This is my favorite. It’s cheap, easy, and versitile. I try to update it quickly each day or at least once a week to keep track of where I’m at each month with spending.
EveryDollar.com: A user-friendly app for digital budgeting, perfect for keeping everything at your fingertips. This is a great way of keeping track of finances at your fingertips. I’m old school and would prefer the worksheet, but many really enjoy this app. There is an upgraded version as well for even more analysis.

Helping Kids Learn Budgeting with a Cash Envelope Wallet

I have a Masters in Finance. Probably the best thing I learned from that Masters was how to teach my kids financial responsibility early on, hopefully avoiding many of the mistakes I made myself. Here’s how I involve my children:

Use a Cash Envelope Wallet: I recommend the Cash Envelope Wallet on Amazon to demonstrate saving and spending.
Make Budgeting Interactive: Let your kids allocate money to categories like giving, saving, and spending.
Have Fun: Gamify budgeting with rewards for staying within their envelopes.

The debate continues about allowance. Personally, I give my kids an allowance each month for doing absolutely nothing. They get $1/week based on their age, so my 10-year-old gets $40/month. Additionally, they get a $10 bonus of quarters each month, given to them at the beginning of the month in a jar. However, they don’t get to receive that $10 bonus until the end of the month. During the month, if they backtalk, are disrespectful, don’t do what they’re told, don’t do their chores, fight, etc., they get a quarter taken out each time. Hence, my children are among some of the highest-paid children their age in our area. However, they also are in charge of buying their own clothes and gifts for friends’ birthdays. If they have savings from the previous month, they’ll get a little interest. This has been very beneficial in teaching them financial responsibility and the weighted effects of spending.

Adding a Giving Section to Your Budget

Money has a way of magnifying a person’s life. If someone is generous when they have little, they will be even more so when they have a lot. And vice versa. Giving cultivates an abundance mentality, making people more open to opportunities and willing to take calculated risks. It leads to strengthened relationships, emotional fulfillment, and often creates a ripple effect. As the Bible says,

“One gives freely, yet grows all the richer; another withholds what he should give, and only suffers want. Whoever brings blessing will be enriched, and one who waters will himself be watered.” (Proverbs 11:24-25)

Setting aside even a small amount each month for giving builds compassion and gratitude.

Overcoming Common Budgeting Challenges

Homeschooling moms face unique hurdles when it comes to budgeting. Here are strategies to stay on track:

Consistency Is Key: Schedule your budget reviews like any other important activity.
Tackle Irregular Income: Build a baseline budget and allocate surplus income to variable expenses or savings.
Focus on Progress: Don’t let perfectionism derail your efforts. Celebrate small wins and adjust as needed.

Resources for Learning More About Financial Literacy

Expand your knowledge with resources tailored for families:

Smart Money, Smart Kids by Dave Ramsey: This book provides practical advice for teaching kids about money.
EveryDollar: A budgeting tool developed by Dave Ramsey that helps track expenses and manage money effectively.
YNAB (You Need a Budget): A user-friendly app with a strong educational component, offering tools and tutorials for effective budgeting.
Investopedia: A comprehensive resource for learning about personal finance, investing, and economic concepts.
The Penny Hoarder: A blog focused on saving money, earning extra income, and financial planning tips.
NerdWallet: Offers detailed reviews of financial products, tools, and calculators for budgeting, credit management, and more.
Khan Academy: Personal Finance: Free, comprehensive lessons on budgeting, saving, credit, and other financial topics.
FINRA’s Financial Literacy Education: Offers tools and resources for learning about investing, budgeting, and managing financial risks.
Coursera: Financial Planning for Young Adults: A beginner-friendly course designed to teach financial planning skills, budgeting, and goal setting.
MoneyTime: An online financial literacy program designed specifically for kids, making learning fun and interactive.

Consistent monthly budgeting can transform your financial outlook and reduce stress. By leveraging effective tools like the Excel Monthly Budget Template and involving your family, you can make the process manageable and rewarding. Ready to get started?

Leave a comment below if you’d like more details on how I budget with my kids or additional resources.

Homeschool Moms: Build the Habit of a Monthly Budget