Budgeting is a critical life skill. So, it behooves your child to learn some budgeting basics before leaving the nest. But, like any skill, budgeting takes practice to master.
Unfortunately, few things sound more boring to your kid than: “Let’s build a budget together!’
How do you beat back the yawns? A little AI, an interactive scoreboard, and a cash bonus opportunity.
Try this technique using ChatGPT, Google Sheets and FamZoo. (Of course, you can substitute your favorite AI chatbot, spreadsheet, and payment method.)
Note: I’m using back-to-school planning for this particular example, but you can apply the technique to any other multi-item budgeting scenario, like planning a summer trip, shopping for groceries, or funding a hobby.
Preview my sample Google Sheet by clicking here. Select Use Template to make your own editable copy.
Here’s how you and your child can work through it together:
- Identify the candidate items. In Google Sheets, add a row for each item your child needs or wants — backpack, jeans, shoes, calculator, etc.
Use ChatGPT to generate the initial list or double-check you haven’t missed anything. Try a prompt like: “What does a typical middle schooler need for back to school?”
- Source options for each item. Add a row beneath each item filling in its description, price, and whether the option is the current nominee for purchase.
Always include a free option first if possible — like reusing an item from last year or using a hand-me-down or simply making do without if it’s non-essential.
Then add purchase options across a range of prices. ChatGPT is perfect for this sourcing and product comparison stage. Try prompts like: “What are some backpack options at different price points for a back-to-school budget?”
- Set the budget. Do an initial “parent pass” through the spreadsheet and check the option for each item that you feel delivers a reasonable result. If the Total Selected Amount feels right, enter that number in the Budget cell.
- Dangle the bonus offer. Let your child know that if their purchases total up to less than the budget, they’ll get to pocket the savings as a bonus.
Viola! Suddenly, budgeting just got interesting!
This is where the Under/Over Budget line item in the spreadsheet comes into play. As your child checks and unchecks the boxes to make their selections, the totals at the bottom of the spreadsheet automatically update. When there’s a surplus, the Under/Over Budget amount is green. When they’re over budget, it’s red.
- Decisions, decisions! Turn your child loose on the spreadsheet to wrestle with the trade-offs and see the bottom-line impact of every decision along the way.
“If I pick the Vans shoes, I’ll owe mom $9.45. If I settle for the less cool brand, I’ll pocket a $17.55 bonus. Hmmm.”
You may need to revisit the sourcing step during this phase to expand the options.
You may need to adjust the budget if you find the original wasn’t quite right.
Discuss the difference between frugal and cheap as well. Inform your child that if a cheap item breaks, they’ll be on the hook to replace it.
- Make the purchases. Transfer the budget amount onto your child’s FamZoo card and let them shop (with your help if needed).
Encourage them to hunt for sales or coupons to boost their bonus.
Consider topping off the budget a bit to accommodate unforeseen expenses like sales tax.
When budgeting becomes bonus-hunting, building the skill becomes a game kids actually want to play.
For reference, here are the key spreadsheet features behind the interactive budget:
- Checkbox cells — select Insert → Checkbox to format a cell as a clickable checkbox that toggles between TRUE and FALSE values.
- SUMIF function — use =SUMIF(checkbox_range, TRUE, price_range) to add up only the checked items.
- Conditional background color — select Format → Conditional formatting to turn the budget cell green when positive and red when negative.
- Merge cells — Select cells and pick Format → Merge cells to create clean item section labels that span all columns.
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