Treat Your Kids to Money Smart Ideas This Holiday

Money Smart Ideas This Holiday Season

Every year American children receive around $15 billion in allowances, gifts, and wages - which is reason enough to teach them money management and consumer skills. The following tips may be the difference between having a financialy stable child in the future - and one who isn't.

Lead By Example...


On shopping days take your child with you. Make sure that you include them in the planning, budgeting, and comparison shoppiong process. This means that YOU also have to shop within your budget. While shopping if your child wants to by something not planned for, or over budget. Explain that spending more on the item today may not be as important as saving up for something that you may want or need in the future.

You Here it all the time but, LIVE WITHIN YOUR MEANS...


Our society today is geared around materialistic value. Meaning that a majority of people, young and old, think that they are judged by what they have, or what they wear, or how much money they make. This can cause un-needed financial strain if you are not living within your budget. This also teaches children that it is ok to spend money that you don't have. Money management is important. When a child wants to spend a significant amount of money on something say... A new gaming system or a hundred dollar pair of shoes. Have them save a portion of the total cost to help pay for it. They will appreciate the item more and learn a valuable lesson also. For older children : If they ask to borrow money, treat it as a loan issue. Decide a reasonable interest rate and set a time table for the loan repayment - this will teach them how loans and credit work in the real world.

Encourage Savings...


This quite possibly could be one of the most important lessons for you as well as your child. Encourage your child to alot a certain amount of money that they earn for savings. Discuss savings goals and how much they should try to save each month. Break down there savings into long-term needs or wants. If your child is about to make a mistake by spending all of there allowance. Let Them! It is better to learn on a smaller scale than to make a big money mistake in the future.


It is never to early or to late to develop healthy financial habits. The rewards of wise money management are the same for adults and children alike. There is a sense of empowerment as well as a greter appreciation for what you have.