How to teach personal accounting to an 8-year-old?

Question

I try to teach my 8 year old daughter the basics of finance. She has some her own money (partly in a wallet, partly in a piggy-bank). Some time ago, she threw a short tantrum about "someone stealing her money". My wife's and my assumption is that she forgot spending some of her money. Still, the experience must have been difficult for her. Partly to avoid future incidents like that and partly to instill good habits in her, I'd like to teach her some (very basic) accounting. What is a good way for an 8yo to keep track of her money? I don't want anything computer-based, since I think that the haptic feeling of "real" money (as opposed to virtual "money" in a bank) is important, and so may be a notebook (as opposed to a computer file). I don't want to teach her full-blown double accounting (I use such accounting software to keep track of the household finance, but that might be too abstract for a child). So, do you have any suggestions as to how technically an 8yo can keep track of her money, using pen and paper? She can read quite fluently, she understands decimal notation, although she can't yet perform addition (but this may be good opportunity to learn it).

Answer 1

Why not consider the simpler cash basis of accounting? Basically, it’s like keeping a checkbook register. You can easily print a few sheets of columnar paper from the internet. She can keep a running total of the money she has. Sample:

Beginning balance                         $10.00  

Allowance                                          5.00

New balance                                  15.00

Bought candy                                  -1.25

New balance                                    13.75