Well folks, it appears that the “official” holiday shopping mania has begun! Those penny saver ads have been posted for weeks. TV commercials promoting ”sales of all sales” are non-stop. News sources report that hordes have “patiently” waited for those doors to open since the wee hours. Black Friday, Cyber Monday, the holiday countdown clock.
Don’t get me wrong, I love sales and a good buy like the rest of the world. My concern is that all the hype about buy-buy-buy has already hit our kids for months. Have you noticed how stores started displaying holly, lights and Santas almost after the Fourth of July? Red, white and blue quickly turned into red, green, and white. You and I know these next few weeks the advertising blitz will only go into high-octane mode as the holiday countdown continues. Today-good ol Black Friday-is the Kentucky Derby for mass spending.
The National Retail Federation survey says that over 60 million people–nearly one in five Americans–will be hitting those stores this weekend in search of bargains. While you’re searching for those deals and standing in those lines remember this weekend is also the perfect time to talking to your kids about money. And here’s why….
Teens Flunk Financial Literacy
Approximately fifteen hundred high school seniors were recently asked basic facts about personal finance, and the great majority were stumped for answers. The results were not promising for our children’s future:
Ninety-five percent of teens recently surveyed scored below a C in financial literacy. If you’re wondering why, read on. Another survey found that 80 percent of all college freshmen admitted to never having a conversation with their parents about managing their money. What’s more, almost one in four of these teens say it’s just fine to blow as much as $500 without checking in with Mom and Pop.
Hmmmmm. Hardly a proud American moment, wouldn’t you say? But I also hope you are starting to get my drift. The truth is too many kids are flunking financial literacy. And one reason just may be that we’ve failed to teach our children a few essential money smart lessons.
If you’re concerned about your kids’ future spending habits, then start your “money talk” now. And there’s no better time than these next few weeks. Newspapers will be filled with coupons and penny savers (My local newspaper was so thick I let my dog have a day of rest and not bring it into the house. Poor Bentley couldn’t get his jaw wide enough!) Television ads for holidays “deals” will air non-stop. Teen magazines will feature those supposed holiday “in” gadgets and “must have” items. They all make perfect opportunities to let your kids know that money doesn’t come easy. It’s also the time to review that you do have clear expectations and limits about your family’s spending during the holidays. Here are a few ways to weave in those crucial money chats over the coming weeks.
8 Ways to Use the Holidays to Boost Our Kids’ Money Smarts
Be a good role model. Kids always look to us as the example to copy. Are your kids seeing you cut out those coupons? Waiting for the right price? Displaying smart spending habits? Prioritizing your “must-haves? Beware: our kids are watching and learn spending and saving habits from us.
Monitor TV consumption. Television is the one of the biggest culprits in fueling kids’ spending urges, and commercials are relentless in trying to get kids to buy, buy, buy. Research all shows that media impacts our children’s money attitudes and increases materialism.During the next few weeks those retailers will be pushing products and urging your kids to spend. So beware of those advertisements! Do take time to explain to your kids the real intention of those advertisers.
Use real-life examples. Take your child shopping with you. I dare ya! But when–or if–you do, show him how you compare prices. Explain to her how you look for bargains. Use those outings as teaching moments that instill good shopping habits.
Teach bargain hunting. If your kids are purchasing gifts for siblings (or even you!) get them involved in checking out those penny saver ads. Have them clip out coupons. Tune your kids into the bargains at those dollar stores. Hit the outlet malls, and don’t overlook thrift stores and even garage sales. And tell them to watch for sales! Grandma will never know if her present was ten dollars less because Johnny waited to buy until sales day.
Cut impulsive shopping. Set a household rule that your child must write down any pricier intended purchase and then postpone buying it for at least twenty-four hours. It’s a great way to teach kids to delay gratification and to “Think” before spending. (Profound concept, eh?) A younger kid can draw it on her “wish list.” The wait time could vary from an hour or day to a week or month depending on the child’s age and maturity. If she loses interest before the time is up, even she will agree that she didn’t really want that item after all.
Teach “wants vs. needs.” This is the “Gotta Have It NOW Generation” so a big step in helping today’s kids learn to be smart spenders is teaching the difference between “want it…” vs. “need it.” The trick is to get your kids to assess what they already have that is still in good shape and can be recycled. What’s missing and really needed is on the “need” list and holiday request list. Now your kids can create a shopping list based on real needs --not wants-- to help prioritize spending.
Do one store shopping to boost consumer skills. Consider choosing just one store that has the best bargains to take the kids this year (like WalMart, Target, K-Mart) for their gift-buying. By announcing, “We’re shopping only at this store,” the kids are forced to look for the best bargains in one place and you won’t find yourself driving to multiple stores (and bringing back multiple items).
Consider after-holidays gift buying. Seriously! I know more families who realize the best deals are December 26. They’ve set a new rule: you receive a few items under the tree but wait for that pricier item the day after the holidays. The kids learn to appreciate the value of a good deal, the parents are grateful to save a ton of money, and the whole family enjoys that day after shopping outing for everyone’s “one special–and better-priced-gift.
All the best on your shopping. As for me, I’ve decided to stay home. Black Friday was much too stressful last year.
Free consultation 
