4. Plan out purchases. For kids of all ages, making a list before going to the store helps reduce impulse decisions. Have your child help list out everything you need before leaving the house. Then when they ask if they can have something else, remind them that it’s not on the list. For older kids, introduce the idea of waiting to buy something they want. Delayed gratification is a hard concept even for most adults. For any items on a “wish list,” talk about how much it costs and help them plan for the money required to purchase it.
5. Be a smart shopper. When grocery shopping or making larger purchases, have your child help locate coupons or sales. Bring children along when comparison shopping so they can understand price differences. Set aside enough time so kids can help you scout out the best prices when buying clothes or preparing for a party. For older kids, read reviews and compare items when online shopping
6. Model good use of credit. Introduce children to the idea of buying things with credit. As an example, let the kids witness you swiping your card at the gas station. Remind them that you’re borrowing money to fill up the tank and you'll have to pay back the purchase (possibly with interest). When the credit card bill for that purchase arrives, review it with the kids. Highlight the importance of honoring your agreements with the lender by making on-time payments and keeping balances low. For older kids, introduce the topic of a credit score and credit report. Pull up your own history as an example. Teenagers especially should be aware that a positive credit report will help them in the future.
7. Stress the habit of savings. From an early age, teach the importance of setting aside money, whether from earned income or by setting aside a small portion of a child’s birthday or holiday gift, to be used for emergency or a special future purchase. Visit your credit union or other financial institution for a kid-specific savings option for caregivers to open in their name. Research other kid-specific programs or accounts the financial institution might offer.
Set a Foundation for Financial Health! Our partners at GreenPath Financial Wellness emphasize that these tips, and other everyday money lessons you might want to try, set a foundation for a lifetime of financial health. Connect with a caring GreenPath counselor for further financial wellness insight.
