Many parents provide their children with allowances or make them earn their money by doing chores. This is a great way to teach them about earning money and even spending money on things that they really want. But, do you teach your kids the value of a dollar? Do they know how much is too much to pay for something? Do they know how to shop, bargain shop, or know whether or not the item they want is worth the money?
This is something that they really do need to know, especially as they grown into an age where they are buying their own things or ready to leave the house.
Here are 5 tips for teaching your kids all of the above:
- Spend time with them at the store on pricing items. When you take your kids shopping, talk about prices for the items which you are buying. When you look at a food item, for example, let them know whether or not the price is too high or just right for the product. Explain to them why the price they see may be too high, a great bargain, or just right.
- Explain why the money they have earned should be saved and not spent. A tendency for our kids is to buy something right away with the money they have earned from allowances or jobs. But, they also need to know that saving up for something better or for a rainy day is also important.
- Lead by example. If you are a big spender or are buying big ticket items every chance you get, your kids will think that is how life is lived. It is great to have nice things – we all way that – but leading our kids to believe that they can just buy, buy, buy will not let them know that bills and obligations need to be paid first. Not everyone can afford to buy everything they see.
- Remember the basics and teach them. We all know that when we buy products at the store that tax is added and when we buy online that shipping and sometimes tax is added there as well. Make sure your kids know this and can figure it in when making purchases. Tell them to add on a little each time they choose to buy something at the store for tax and show them when buying online how much that shipping can really be!
- Discuss ways to save money on items and shop frugally. This is especially important as your kids are getting ready to leave the nest. Show them the ads you receive in the mail, coupons they can obtain, and discount store prices compared to other stores. Grocery store and home products can be purchased at cheaper stores. Dollar stores and discount grocers can be their best buddies once they move out. Make sure they know where to shop, what is worth the trip, and why!
We as parents and guardians are responsible for teaching our children how to survive out there! Financial aspects of life are no different and responsibility with money is a huge lesson for them. The actual value of a dollar, knowing what is priced well and what is not, how to read the fine print, and not let them overspend is also a part of our jobs. Also, teaching them to be very careful when shopping or buying online is essential these days.
Do you have any tips of your own? Leave us a comment below.