Teaching Kids About Holiday Spending

teaching kids money

Between the gift wrap and the endless treats and the presents stuffed under the tree, the holiday season can create more fear than cheer when it comes to your budget. If you have little ones at home, this fear can multiply as you seek to offer them the happiest of holidays. Use this month as the perfect opportunity to teach them about tracking, spending, saving, and giving money with these pointers from Peoples Bank & Trust.

  • Create a budget: Squeeze the most magic out of the holidays by creating a battle plan. Explain the concept of budgets to your kids. Once they comprehend how the basics of a budget work, mentor them to create one of their own, allotting a dollar amount on gifts for each person on their holiday list. Help them track their spending through the season and find a fun reward when they manage to stay on track!
  • Get crafty with gifts: If you haven’t been accumulating gifts as they’re on sale throughout the year, your wallet may take a serious hit when prices spike during the holidays. Try your hand at a homemade gift, ranging from thoughtful cards to favorite family recipes. Many of these heartwarming DIY’s can be created with supplies lying around the home or purchased for cheap. Your kids benefit when they unleash their creativity and see the thoughtful effort of a gift crafted by hand.
  • Shop smarter: Don’t leave your kids in the dark with the money you plan to spend. When you head to the store, be upfront about how much you plan to spend on what purchases and why. With that knowledge in mind, they can help you spot sales as your cruise the aisles. Turn your shopping adventure into a game by challenging them to find the best deal or most creative alternative. Add an extra level and pay with cash to give them practice counting money and deducting coupons.
  • Give, give, give: It’s better to give than to receive, and the holidays are the perfect opportunity to show your kids this principle in action. Explain that other families may or may not be in the same financial boat as you. Enjoy the season with other community members by volunteering or donating to organizations like Toys for Tots, your local food pantry, or Operation Christmas Child to help children and families in need.

The most wonderful time of year can still be a frugal affair with a little planning. Peoples Bank and Trust is always here to help your family make the most of your financials to start strong in the New Year!

Peoples Bank & Trust Co.

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