Most parents want to raise financially savvy kids, right? I'm a firm believer that teaching children about money is all about leading by example. That's why taking them shopping with you is perfect for showing them how money works, and how to be smart about spending and budgeting. Here's how to do it:
1. Tell them your budget. I love my niece, I really do, but she does everything strictly by the book and loves to point out when anyone else breaks the rules. This is pretty typical of most little kids, actually, so you use it to your advantage! Tell your children what your shopping budget is for the trip and what you need to buy. That way, they will call you out if you start to contemplate impulse purchases in the store.
2. Let them use the calculator on your smartphone (or even bring a regular, old-fashioned calculator along). This is the ultimate game of make-believe cashier for little ones – and they will relish the chance to let you know you're about to break your budget! Kids will also learn how to prioritize their wants and needs, and how to compare like items to see what they're willing to compromise on. For example, explain that baking a cake from scratch or even from a boxed mix can cost just a few dollars, but buying a fancy bakery birthday cake can cost $20 (or more!). Explain how the savings will allow you to spend in other areas, thus balancing your budget.
3. Try to use cash whenever possible. Here is where leading by example really works well, in my opinion. When you pay with a credit or debit card, the kids only get to see the card swiping. They don't get to see when you sit down to pay the bill at the end of the month, or watch the dollar bills float magically from your paycheck into the cash register at the store. It's less concrete for them. When you use cash, they see how money is really exchanged for goods and services, and they can even practice their arithmetic at the same time, when making change.
Yoly Mason, a blogger living in Orlando, Florida, wants to live in a world where Latinas can enjoy an abundant life with a small budget, and where being in debt is as out of style as the rotary phone.
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.
