The Holiday season is a time for giving, and for a lot of kids, this means that they’re not just getting gifts like toys or clothes, but also Christmas money as well.
That means that moms and dads have to make sure that their children learn how to be smart with their money and to not spend all their Christmas money in one place. It can be especially tempting for kids to spend all their money just to get the toy they’ve always wanted, so it’s up to mom and dad to help make sure that their kids know how to handle their money wisely.
Here are 4 great tips to help your kids better manage their Christmas money!
Teach them to spend their money only on things that they need, not want
When your child receives money for the first time, they might be tempted to spend it on a toy that they’ve always wanted, especially since kids don’t always have the opportunity to have money that they can spend freely.
However, make it a point to let your child think first before spending their money. Ask them to make a list of pros and cons whenever they want to buy something, and let them run it through you first so that you can let them know if they’re making a wise decision or if they’re just buying something on pure impulse.
Set aside some money they can spend, but save the rest
It’s totally fine to let your kids spend some of the Christmas money that they got, since it’s their money after all. However, it’s not a good idea to let them spend the entire amount. Set aside most of the money as their savings, and they’ll be grateful about it once they’re all grown up!
Open a savings account for your kids
At a young age, having a savings account is a good idea. It helps encourage the concept of saving for the future and being smart about spending in your kids at a young age.
There are a lot of available plans for kids in various banks, and it’s a good idea to let your children know how banks work and how they can take advantage of the services that banks have in order to save their money for the future.
Practice what you preach
Moms and dads, make sure to set a good example for your kids when it comes to being money-savvy. It’s important to show your kids that you’re also smart about where you spend your money, and that you’re not simply spending it willy nilly.
Kids learn a lot by following their parents, and money is no exception!
READ: 5 practical lessons to teach your kids the value of money