Money lessons for kids Christmas 2018
It’s the most wonderful time of the year, a time of good cheer and being close to loved ones. But, Christmas as a parent often means financial and mental stress. Don’t pass it on to your kids, teach them a money lesson this year!
Holidays are coming! That means time off work. Gifts in abundance. A proper feast together with friends, family, loved ones. And for parents, it also means seeing the face of pure joy in your kids.
Speaking of kids and the holidays, this is an opportune time to teach your kids valuable lessons related to money management. Not only is Christmas a time with many money-related discussions, but it also becomes natural to instigate experiential learning. Here are five tips on how to let your kids practice money management for the holidays.
Make the most of the holidays - Planning and budgeting for kids
Some kids may want to give Christmas gifts to their family members, help them plan and budget to make the most of their gift money.
Here are some pointers:
- Who should buy gifts for?
- How much money do you have and can you afford to include everyone?
- If your kid feels like the money isn’t enough, consider helping them out by setting extra chores!
- Where can you buy it, and when should you go?
Great success or deep regret - How do you return gifts?
Unwanted gifts are the perfect opportunity to teach about the right to return.
Many retail consumers overlook this as an option after spending money on things that end up being deep regrets.
Save your receipts for the kids’ gifts, and have a sit-down some days after Christmas to evaluate the gifts. Any gifts that weren’t as fun as expected, or broken to easily. Give them the receipt and go to the store together to return it. Include the kids’ in the entire process to make it a learning experience.
Learning from your mistakes - Let the kids manage their own money
Some family members give money as opposed to gifts. For younger kids this may be the largest chunk of money they have held at a single instance. Rather than telling them how to manage their money, give them the freedom to freely dispose of it - and then evaluate how they used it.
By doing so you urge them to make financial decisions on their own, and then evaluate them to really capture the learnings from this. For example, a £50 gift from the grandparents could buy them a video game straight-away, but by saving it until the next allowance could afford a more preferable game. After making a decision on whether to save or spend immediately, talk about the decision and whether it was worth it.
Dream big, start saving - Save for a dream Christmas gift
Related to managing their own money is the question of saving money. With a wishlist full of fun things it is natural that you don’t get everything that you want. Encourage your kids to not be sad about it, but set up their own dream goals, and start saving!
Use the Gimi app to motivate your kids to develop their earning potential, and keep their eyes on the balls/dream.
Evaluate your options - gift cards or cash for Christmas
Sometimes, rather than giving kids cash to spend or trying to buy a specific game, it may be more suitable to buy digital gift cards. For example, Christmas gift of the year for kids in 2018 was gaming currencies. Gaming currencies have to be bought using a credit, debit or gift card. In this instance, it is recommended to purchase a gift card rather than setting up a credit or debit card. So that kids can freely dispose of their money, and invest it in digital assets on their own.