Teaching Kids About Money Management for Back-to-School Shopping

As the summer months come to a close and the school year looms on the horizon, parents and children alike begin to prepare for back-to-school shopping. This period is often filled with excitement and anticipation. (Of course, this is not a time of the year that I look forward to as a parent.)  However, it does provide a unique opportunity to impart valuable financial lessons to our children. Teaching kids about money management during back-to-school shopping can set the foundation for lifelong financial literacy.

So, let’s explore some practical strategies, age-appropriate advice, and engaging activities to help children understand and manage money effectively.

Introduction to Financial Literacy for Kids

Financial literacy is an essential life skill that empowers people (Yes, even kids) to make informed decisions about their money. For children, understanding the basics of money management early on can lead to better financial habits in adulthood. The back-to-school shopping season is an ideal time to introduce these concepts in a real-world context. By demonstrating with “real world” examples, you are making the lessons more tangible and relevant.

Why Financial Education is Important

Before diving into specific strategies, it’s crucial to understand why financial education is important for your children. Here are a few reasons:

Building Good Habits Early:

Children who learn about money management early are more likely to develop good financial habits that last a lifetime. And, Heaven knows, I wish someone had taught me early on about being financially fit.

Don’t get me wrong. I am not blaming my parents. They did the best that they could with what they had. And, that wasn’t a lot.

Understanding Value and Trade-offs:

Learning about money helps children understand the value of items and the concept of trade-offs which is essential for making informed decisions. And, it helps them to better understand that money isn’t just something that they can waste because it’s mom and dad’s money.

Avoiding Debt:

Early financial education can help children understand the dangers of debt and the importance of living within their means. Again, this is another lesson that I wish I had learned earlier.

Achieving Financial Independence:

As children grow older, having a solid understanding of money management will help them achieve financial independence and security.

Strategies for Teaching Money Management

Here are some practical strategies to help teach kids about money management during back-to-school shopping:

Budgeting:

Introduce the concept of budgeting by setting a back-to-school shopping budget. Involve your child in the process of allocating money for different items such as clothes, school supplies, and extracurricular activities. And, make them stick to their budget. This can get to be a headache (Trust me. I know.), but it will be well worth the hassle.

Making a Shopping List:

Before hitting the stores, work with your child to create a comprehensive shopping list. This helps them prioritize needs over wants and stick to the budget.

Price Comparison:

Teach your child to compare prices at different stores or online to find the best deals. This can be a fun activity that also instills the value of money.

Using Cash:

If possible, use cash for back-to-school shopping. This provides a tangible way for children to see money being spent and helps reinforce the concept of finite resources. (Hey, this even works for adults.)

Saving Strategies:

Encourage your child to save a portion of their allowance or gift money for future expenses. Discuss the benefits of saving and how it can lead to more significant purchases or financial security.

Age-Appropriate Financial Lessons

The approach to teaching financial literacy will vary based on the child’s age. Here’s a breakdown of how to tailor your lessons:

 

For Young Children (Ages 5-7)

Basic Counting and Recognition:

Start with the basics of counting money and recognizing different coins and bills.

Understanding Needs vs. Wants:

Discuss the difference between needs (essential items like school supplies) and wants (extra items like toys or fancy gadgets).

Simple Budgeting:

Use simple, visual budgeting tools like jars or envelopes to allocate money for different purposes.

For Elementary School Children (Ages 8-10):

Advanced Budgeting:

Introduce more complex budgeting concepts, including tracking spending and setting savings goals.

Comparison Shopping:

Teach children how to compare prices and quality between different stores or brands.

Earning Money:

Encourage children to earn their own money through chores, small jobs, or entrepreneurship (like a lemonade stand or a t-shirt design business).

For Middle School Children (Ages 11-13):

Bank Accounts:

Consider opening a savings account for your child and teach them how to manage it.

Online Shopping and Security:

Discuss the pros and cons of online shopping and the importance of online security.

Long-term Savings Goals:

Help your child set and achieve long-term savings goals, such as saving for a big-ticket item or a future event.

For High School Children (Ages 14-18):

Income and Expenses:

Introduce the concept of income and regular expenses, perhaps through a part-time job or internship.

Credit and Debt:

Discuss the basics of credit, loans, and the importance of maintaining a good credit score.

Investment Basics:

If appropriate, introduce the concept of investing and how it can grow their money over time.

Engaging Activities to Teach Financial Literacy

Role-Playing Games:

Create scenarios where your child needs to make financial decisions, like running a pretend store or planning a mock shopping trip.

Educational Apps and Games:

There are many apps and games designed to teach children about money management in a fun and interactive way.

Allowance and Chore Charts:

Use allowance and chore charts to teach the value of earning money and budgeting for different expenses.

Real-life Experiences:

Take your child to the bank, involve them in paying bills, or let them help plan a family budget to give them real-world financial experiences.

Practical Back-to-School Shopping Tips

Here are some practical tips to make back-to-school shopping a financially educational experience for your child:

Set a Budget Together:

Discuss how much money will be spent and involve your child in deciding how to allocate it.

Prioritize Needs Over Wants:

Emphasize the importance of buying essential items first and saving for non-essential ones.

Shop Sales and Use Coupons:

Teach your child how to look for sales and use coupons to save money.

Buy Quality Over Quantity:

Explain the long-term value of buying high-quality items that may cost more upfront but last longer.

Avoid Impulse Buys:

Encourage your child to think twice before making impulse purchases and to consider if they really need the item.

Long-term Benefits of Financial Education

By teaching your children about money management during back-to-school shopping, you are not only helping them make smart financial decisions now but also setting the stage for a financially responsible future. Here are some long-term benefits:

Improved Financial Habits:

Children who learn about money management early are more likely to develop good financial habits.

Better Decision-Making:

Understanding the value of money and how to budget helps children make better financial decisions throughout their lives.

Financial Independence:

Children who are financially literate are more likely to achieve financial independence and security as adults.

Reduced Financial Stress:

There is nothing like a “peace of mind”. Knowing how to manage money effectively can reduce financial stress and improve overall well-being.

Back-to-school shopping offers a unique opportunity to teach children about money management. By involving your child in budgeting, price comparison, and prioritizing needs over wants, you can instill valuable financial lessons that will last a lifetime. Tailor your approach based on your child’s age and use engaging activities to make learning about money fun and interactive. By starting these conversations early and making financial education a part of everyday life, you can help your child develop the skills they need to navigate the complex world of personal finance with confidence and success.

Other Post to Read:

https://2cuteclassroom.com/financial-step-every-new-teachers-need-to-take-now/

Items to check out from my TpT store about budgeting/money management: 

https://www.teacherspayteachers.com/Product/How-to-Save-Money-as-a-Teen-6517161

How to Keep Your Kids from Blowing Your Budget this Holiday Season

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:

https://www.youtube.com/watch?v=pSLmPosyAeg

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.

https://youtube.com/shorts/zdgZipBxxhE

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