Money management skills learned at an early age can have a lasting impact on the rest of a child’s life. Teaching children about money is important throughout the year – but the holidays present a perfect opportunity for kids to learn what things cost. Here are some great ways to teach your kids about money and what things costs during the holidays.

 

Begin with basics

One of the best ways to teach a lesson is by doing so without your child even realizing that they are learning. As you share insights, tips and financial education be sure to include fun as part of the journey. Playing games that include a financial element like Monopoly or Life are a great way to spend time together and share some teaching moments. During the holidays, help your kids set holiday gift giving goals that encourage them to have fun while they learn to plan and make their gifting vision a reality.
 

Gift goal planning

While it might not be age appropriate to share with kids a complete picture of monthly income, expenses, and debt, this holiday season is an opportunity to introduce the “basics” of sticking within a set gift giving amount while helping children appreciate the cost of the holidays. This can help your child learn important foundational principles and an essential part of financial health is creating a set of priorities.

This exercise is intended to provide children a first-hand experience with money – helping them learn and appreciate how much things cost. While telling our kids about the important role of cost is valuable it’s much more impactful if they see you demonstrate these lessons. Consider taking your child shopping and actively explaining your decision-making process. When you arrive at the store, tell your child how much money you have to spend and what your priorities are. Show them why you are picking one item over another and explain things like discounts and coupons. Remember, children learn most from a parent’s example.
 

Building a strong financial foundation

No matter our financial situation teaching kids about money is valuable. These lessons help your child develop a healthy attitude towards money as they grow into adults. The holidays provide a chance to make things more lighthearted. It just takes a bit of planning, a little patience and some creativity.

Do you need help navigating your financial situation to be better equipped to teach your kids? Stop by your neighborhood Financial Health Center where a Member Relationship Specialist can help you build a spending plan, understand your credit report, come up with a plan to repay debt and work with you to create an action plan to achieve your family’s financial goals.