When we hear the word fitness, it conjures up thoughts of being healthy, active, and in good shape. But did you know we can apply similar concepts to our wallets and bank accounts? Being financially fit can best be defined by making good choices when we interact with money on a daily basis.
Just like being physically fit, exercise is part of the financial-fitness journey. Here are six fun exercises you can do with your kids:
Budget agility test: This is an opportunity to show your kids about variable expenses that are unknown but controllable (like an electric bill or cost of a last-minute grocery run). Just sharing and creating a list of where the money goes with them can be a great lesson.
Play "Beat the Price" before shopping: Sit down with your kids and share a list of the household supplies you need and the budget you've allocated to buy them. Share some printed store circulars and declare a "Beat the Price" challenge. Have the kids "shop around" to see who can find the best advertised price.
Try to balance the cost/benefit seesaw: Are you thinking about buying a big-ticket item? Talk to your kids and together come up with the pros and cons of making such purchase, and how you can save up to fund it, if necessary. This discussion will also help them learn the concept of delayed gratification.
Draw up a big-purchase treasure map: Another way to really demonstrate what's involved in dropping lots of cash is to have the kids help come up with ways to pay for (and save up for) the purchase. Maybe they'll contribute some funds from their weekly allowance, or sell unwanted toys. Then let them draw a map with the purchase as the "treasure" and the incremental steps they'll take to save for it along the way.
Grocery store sprints: The grocery store is my favorite place to teach kids about being financially responsible. This exercise is all about making sure you are getting the best deal by comparing prices and sizes of items that are on your shopping list. They'll be doing "sprints" by racing to be the first to identify the best deal!
Cash or credit tug-of-war: This is a good family exercise to weigh the cost of paying for a purchase with cash or credit. The tug of war will help you explain how credit cards are just a loan that needs to be repaid. Can you pay off this purchase at the end of the statement cycle before paying any interest?
Remember that real progress is made by achieving small gains over a long period of time — just like with physical fitness!
Image via iStock
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.
