The science behind finance is complicated. There are many systems and inputs that affect how the financial market works. Many of these inputs deal with how people view and interact with their finances. When explaining how financial systems work to kids it is best to lead by example and then provide them with the opportunity to deal with financial issues. When you children are choosing to do science fair projects, is the perfect time to coach them through the process of how to set a realistic budget that fits within your family’s financial means.

Science fair projects have become really big business in recent years. This is due in part to the increased sponsorship of state and national level science fairs and to the growing need to develop a diverse and rich portfolio for college entrance applications. Corporate sponsorship of science fairs has made entering these science events a financially lucrative activity. Kids now have the opportunity to earn thousands of dollars in scholarship money which they can use at a college of their choice. This financial opportunity has encouraged parents to invest big money in their student’s projects. This can be very enticing. I encourage you to be careful and not be influenced to spend more than you can afford.

Setting a budget for a science fair project is important to do. To start with you need to read the rules for the science fair that your child will be entering. Sometimes, but not often, the rules set a dollar limit for each type of project. Next you will need to set limits based on what you can afford to spend. If you can’t afford to spend a lot of money on a science fair project then look for deals on supplies, for example, you can purchase discount student microscopes.

Keep in mind that most of the winning science fair projects at the state and national levels are created with limited budgets, the winning characteristics of the projects are mainly produced by the work done by the student and their innovation.

As mentioned earlier kids learn a lot about finances by watching how their parents use and manage their own money. This is why it is very important for you to be a good financial role model for your kids. You can do this by creating realistic budgets for your household, by talking about the importance of smart money management and by providing your kids with the opportunity to manage money for smaller projects so that they can learn the skills required to be financially successful as an adult.

I remember vividly that when I was about 9 years old my father had envelopes on my parents bed and he was inserting a specified amount of cash into each one. I asked him what he was doing. He explained that this was the money he had earned at his store during the week and that he was dividing up his earnings into different categories:

Always save first before you spend. There are different kinds of savings. (1) long term for when you retire (2) vacation money (3) medical expenses (4) college for you and your brother (5) emergency money for unexpected expenses (6)weekly expenses such as food, clothing and entertainment.

My father only had a Jr High education who made himself a Millionaire’s Mindset! His teachings were passed on to my children. When they couldn’t even talk or walk.I would take them to the bank, have them each hand their savings book with money to the teller, and I would explain what was being done and why. They are now adults and my grandchildren are being taught in a similar  manner.

Never did I imagine that my father’s teachings would create responsible people for generations to come … and neither did he!

One last thing… What most people don’t know is that many science fair science kits are made from raw materials and because the scientist buys in bulk, huge savings in terms of time and money are past on to you, the consumer, especially on the Internet.