With the holidays fast approaching it might not seem like a good time to teach your kids important financial concepts. Parents can use the holidays to make their kids money smart not just for the holidays but teach them skills that will help them throughout their life.
What makes the holidays such a good time to teach smart financial habits?
Parents will have tangible examples to show their kids how to use smart financial habits. Learning by doing is always a great way to learn and parents will be able to provide on time guidance, feedback and celebration of successes. And you can start teaching them these habits even before they become teenagers.
What are the most important financial lessons to teach your kids?
These three have the biggest impact for your children all through their life:
Don’t spend more than they can afford
Have a spending plan that includes ideas for gifts
And finally, use comparison shopping to get the best price
How can parents teach them these lessons?
It starts by modeling the behaviors so show them how you plan for the holidays. Then give them a budget and responsibility for buying for a few people on their list. Have them help you with your comparison shopping for your gifts so that they understand how important this is in making your money go farther.
What will likely be the hardest lesson for kids?
Without a doubt, learning to focus on giving rather than receiving. During the holidays everyone likes to buy for themselves while buying for others. This is one habit that almost always leads to overspending so curbing this early pays big dividends.
In the end, what should parents hope their children will learn beyond financial skills?
If your children can learn these three important holiday truths, then you will have accomplished more than you realize:
Being a smart shopper can be fun and rewarding
The best gift is giving time to your loved ones
Thoughtfulness is more important than the cost of the gift