Your daughter's best friend just got an expensive doll, and of course your daughter now wants one, too. Despite her pleadings, it's just not something that's in your budget. How do you break that news to her?
Be open and direct. Although you don't want to make your children feel scared or worried about money, they have to be aware that there are other priorities and needs that come before toys. Depending on her age, you might want to take this opportunity to show her a pared-down version of the family's budget and where the money goes.
Say "We don't want to buy it now" instead of "We cannot afford it now." This puts you and her in control of the situation. If she really wants that doll, she'll have to save for it. Which brings us to…
Make a savings plan and have her stick to it. Not being able to afford something your child wants is an opportunity to teach her about the importance of saving and setting financial goals. Again, the message is that if she really wants the doll, she'll have to save the money to get it.
Offer to pay for some extra work around the house. If you need to clean a closet or haul some clutter out of the garage, offer some additional money for helping you with this task. She'll learn that in order to afford certain things in life, she might have to work extra hard to do it.
Kids are constantly bombarded by advertising and will no doubt ask you to buy things (or pay for experiences) that you can't really afford. Limiting material things is sometimes the best way to teach them the value of money, as long as you do it in a way that doesn't make them feel anxious or worried about the family's finances.
Yamila Constantino is a pioneer of financial education for Latinos. She is a member of the National Financial Educators Council Advisory Board and a winner of the US Hispanic Chamber of Commerce At the Table award for women entrepreneurs.
The information in this article was obtained from various sources not associated with State Farm. While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. These suggestions are not a complete list of every loss control measure. The information is not intended to replace manuals or instructions provided by the manufacturer or the advice of a qualified professional. Nor is it intended to effect coverage under our policy. State Farm makes no guarantees of results from use of this information.
