Teach kids how to spend money
Everyone's spending habits are different. You might blow all of your money on an expensive pair of high heels that you just have to have.You might buy a little black dress that's on sale for half-price - what a bargain! Or, you might hoard the lot.
How you choose to spend your money will have a big influence on what your kids do with it, too.
If you’d like your child to be financially savvy, you'll need to offer them guidance about how to become a responsible spender.
Find out how to be a money role money for your kids.
Teaching kids to spend money responsibly
One of the best ways to teach your kids about responsible spending is to let them have control of their pocket money - or at least a portion of it!
Let them take choose what to spend their money on each week. Some kids will spend all of it at once on little items like games, toys or chocolate.
It's the first important lesson for them to learn about spending - once the money’s been spent you can't get it back!
If their pockets are empty but they're demanding more money, make sure you talk to them about the choices that they’ve made. Let them know they’ll have to wait till next week's "pay day".
TIP:Get your kids to write down a list of the items they’ve bought and how much they cost. They’ll soon see how quickly it can add up!
Giving your kids responsibility for buying things will also help to teach them about the difference between their "needs" and their "wants".
Your kids might say they NEED a new toy each week. If they have to spend their own money to buy it they’ll soon find out how expensive it can be. It'll help them recognize that buying a new toy is a WANT not a NEED.
They’ll learn another basic financial lesson - you can't buy everything you want all of the time! It'll teach them to prioritise their spending.
Your kids also need to learn about getting "good value" when spending their money.
TIP:Take your kids to the supermarket. Compare the different prices and products on the shelves to decide what’s good value.
You can also show them how to do research before buying, shop around to get the best price, or wait for a sale to get a discounted bargain!
It’s a great start to teaching kids how to get the most for their money.
All this talk about spending will also help them begin to understand the merit of saving some of their pocket money too!
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