With your advice, you can teach them but the decision on budgeting money is theirs. If their decision on spending their money is wrong, they will learn from it. Teach them about the difference of wants and needs. This is very important in budgeting money. For parents: It is important to teach your children on budgeting money. Such plans may include a family vacation to Disney World or the construction of a new deck for the house. Once you figure out where all your money is going, you can make sure that you are not wasting. Spending smart is the key towards better finances. It's a way to set financial priorities. But before you get to setting your objectives, you need to take stock of where you're spending your money today. Expensive toys that you just display on the dusty corner, the set of paperbacks lined on the bookshelf but left untouched, dining out when you can cook at home, are all waste of money. Whenever you feel the impulse to shop and dine for your pleasure, why not try this little experiment: estimate the amount you'll possibly pay for giving in to your heart's desire, then set the money aside, put it in an envelop, seal it, and open it after six months. This is so because you learn to accessorize to look great and not have to spend a lot on it. The money allotted for electricity, water and tax should not be disturbed anymore. Tampering with the money allotted for electricity could give you a momentary joy or satisfaction on having purchased something else. With the advent of powerful and low-cost database systems, activity based budgeting is allowing businesses to reduce costs, better utilize resources, and achieve strategic objectives. The Australian National Audit Office has identified the advantages of activity based budgeting: The Advantages - Output costs are supported by a schedule of costed activities - Opportunities to examine work processes - Identifies non value-adding activities that can be eliminated - Basis of a performance measurement system and direct link between strategic goals and operational realities - Enables cost profiles to be managed - Accurate costing data for operational management - Costs are transparent, understandable and actionable Disadvantages - Activity definition may become too detailed and the model may become too complex and difficult to maintain - Underestimation of the task of collecting activity driver data - Implementation may be considered a financial management fad and there is insufficient commitment from operational managers Activity Based Budgeting Disadvantages - Usually requires buying Activity Based Budgeting software - Requires training of all managers including budgeting department - Requires people to really understand what drives their budget - Eliminates excuse that activity volume changed because it makes visible volume changes - Requires everyone to collect or estimate activity volume By understanding how resources are transformed into products or services, and byfocusing on the cost of activities, activity based budgeting helps an organisation to obtain a greaterunderstanding of how costs behave in their organization and which activities create significant amounts of cost. You should not submit yourself to living extravagantly. And in the case of personal budgeting, living extravagantly is certainly out of the question. Water is very essential in, not only your life, but also everyone s life. Without it, many basic things cannot be done. Personal budgeting could make some things possible even with a short supply of water.