Teaching Your Kids Money Management this Holiday Season
Black Friday and Cyber Monday is almost upon us! If you’ve ever taken your kids shopping with you, then you know that trying to get them to understand the importance of careful spending is almost impossible. The holidays can be especially difficult with all those tempting items on full display. Even a disciplined adult can find those Black Friday deals hard to resist. So, what do you do to keep your kids from blowing the budget this holiday season?
Allowance
Start
with an allowance. Your kids need to know what it means to receive and manage
money. An allowance is a great place to begin teaching them about financial responsibility.
Setting
and keeping financial goals
Your children are more likely to stick to the budget
if they have something to work toward. You can help your kids set financial
goals. Maybe, they are working toward that hot, new electronic game or some
other piece of tech gear. Maybe, they simply want to buy toys. No matter what
their goals are, you should sit down with them and help them to figure out how
much money it will take for them to accomplish this goal.
Distinguishing Between Wants and Needs
Our kids can have a hard time discerning wants from needs especially during the holidays. I use the following technique to get my son to identify the difference: When he asks me about making a purchase, I ask him these questions, “Is this an absolute necessity? Will this fit into your budget? Will this help or hurt your efforts to reach your financial goal?” Then, I make him wait at least 24 hours before making the purchase. This gives him time to actually think about the purchase and decide if it is the right one for his budget.
Visual
Reminders
“Out of sight,
out of mind.” It is easy to forget what your financial goals are when
confronted with things that offer instant
gratification. It can be hard to resist those designer
clothes or latest electronic gadget. I know it is for me. And, chances are
pretty good that your kids find it even harder. So, what is the solution? Keep
visual reminders.
You and your kids can keep a mini copy of your budget
with you while you shop. There are a variety of apps available for you to
choose from to help keep your goals visual.
Help them Create a Realistic Budget
Help your children create a budget. There are some great
budgeting apps out there to help your kids get on track with learning how to
manage their money. Some apps to consider are:
FamZoo
Rooster Money
Bankaroo
Piggy Bank
BusyKid
GoHenry
GreenLight
Be sure to check out this video by Brittany Flammer for more information on these apps and to see if they are a good fit for you and your kids:
My son is sixteen, and I want to teach him about
money without putting my money with his. I also want to teach him some simple
investing skills so, BusyKid is the app I’m most likely to get.
However, I still like to use pencil and paper first.
You can decide for yourself which way you like the best.
You can begin by having your children write down all
of the money that they have coming in. This should include their allowance,
gift money, or many from any odd jobs. Next, have your children list any expense
that you plan on having deducted from that money. This should definitely
include the things that they want to buy during the holiday season. Then, do
the math together. This will help give them a realistic idea of how much money they
have, how much the desire item costs, and if they can afford it. By helping
your children create budgets, you are helping them learn how to control impulse
spending.
Coupons
& Codes
Another way you can help your child to stick to the
budget is to help them look for valuable coupon codes or discounts on the things
they want to purchase. Some stores have rewards programs that reward its
members with discounts. These discounts can prove invaluable especially during
the holidays. Also, there are apps like Fetch and Ibotta
that give points to its users that can be redeemed later.
I have both apps. However, my favorite is Fetch.
It’s a little easier for me to understand than Ibotta. However,
again, this goes to preference. You can usually upload the same receipts on
both apps. The most important thing is that you download the apps and get
started saving. If you want to use my coupon code to get bonus points, be sure
to use the code listed below.
Lead by Example
You are your children’s first teacher. Be sure to
teach them the correct way to manage their money. Lead by example. Let them
join in while you prepare the family budget. As you or you and your spouse are
creating the family budget, explain to your kids what you are doing. Explain
why you have to put a certain amount of money back a week back for emergencies
or saving.
Let them see you downloading coupons and coupon
codes. Allow them to watch you use your discount codes and cards. Allow them to
pay for items using your codes.
Make Your Child Financially Responsible
Give your children some financial responsibility
this holiday. Make them responsible for purchasing some of the Christmas gifts
themselves. Make them purchase that coveted item with their own money. Show
them what paying bills entitle.
Savings Accounts & Investing
Now, is also a good time to open a saving or
checking account. Instead of letting them blow that Christmas money from
Grandpa, have them open a Saving Account. If possible, have them use some of
the money their money for investing in stock. This doesn’t have to be a large amount.
They can get started investing with as little as $10 or $20. This will teach
them financial accountability.
As
the holidays approach, it is so easy to get caught up in sales and other
gimmicks. Budgeting is difficult for adults, and your kids are definitely no
exception. Most children have little to no impulse control. However, you CAN
prevent your child from blowing the budget. Teach them valuable money
management skills this holiday season.
You can also check out my book on saving money:
https://www.amazon.com/Less-Everything-Even-Some-Things-ebook/dp/B00X6KV866/ref=sr_1_12?crid=1DZUH3FNXQ7UK&keywords=lawanda+shields&qid=1668288580&sprefix=lawanda+shields%2Caps%2C140&sr=8-12
