Have you ever thought about how to teach kids how to spend money wisely? Spending money sounds easy but unless you have unlimited funds and space, everyone has to make decisions on how, where and when they spend their money. And that can be harder to learn than it sounds. Follow our simple steps to teach your kids how to spend their money wisely when faced with a hard choice.
Read our How to Spend Money story here.
Follow These Simple Steps to Teach Kids How to Spend Money Wisely
1. It's Hard to Choose
Although it can seem painful and uncomfortable, take the time to practice spending where you can offer them hard choices. This can be as simple as the sweets or treats aisle at the supermarket or harder choices in a large toy superstore.
Offering them the space to make difficult spending decisions as they grow up enables them to experience the dilemmas in a safe environment. It allows them to experience that feeling of having to make a decision when in reality you want both.
2. It's Hard to Budget
Budgeting is a massive part of the skill set that children need to learn when they spend their money. Learning that you can’t buy something if you don’t have enough money for it sounds simple but it’s a vital life lesson.
So get your children thinking by asking them to following three questions:
How much money do they have to spend?
How much they want to spend?
How much they want to have left over at the end of the shopping trip?
3. It's Hard to Compare
Not everything is the same. But sometimes when it comes to spending money, it’s a good idea to hold two things up next to each other and ask your child to compare them. To look at the pros and cons of each item to help make the decision of which is the better purchase for them as individuals.
Asking questions like which one is better? What am I in the mood for at the moment? Am I replicating something that I already have? Does this enhance my playtime experience at home? Which one do I love the most?
4. It's Hard to Decide
Once your child has all these things into account, it’s time to make a choice. And that is hard. It’s really easy to just want to have everything. And for kids, it can be hard to accept that they have to make a choice and leave something behind.
Take a moment to empathise with your child. Let them feel the pain of making a hard choice.
Before celebrating the purchase that they have made. Talk to them about how well they have done to make the hard choice. And then to focus on the fun that lies ahead of them.
5. Share Your Story
Children can sometimes think that their parents have all the money in the world and can buy anything they want when they become grown ups. Talk to them about the hard choices that you have had to make when deciding how, where and when to spend your money as adults.
Share the shops that you find really hard to not spend all your money in. Show them that they are not alone in experiencing the challenges of spending money. And just because it can be hard, it doesn’t mean that when done well and wisely, it can’t be a lot of fun.
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