Frugal living is not an innate virtue we are born with; instead, it is a skill that must be handed down from parents to children. A report from money.cnn.com states that the average family income in America is just over $56K. While that may be a king’s ransom in some foreign countries, it calls for tight budgets in ours.
One of the best gifts that you can teach your children is how to be good with money. Being frugal doesn’t mean people are cheapskates. It simply means that they are wise savers and buy the best quality items within their budget. Here are some excellent tips for teaching your children about frugal living:
Money Has Value
As a child, many of us did not understand inflation and the shortage of money. We assumed that the government should just print some more! Some children (and sadly, some adults) think that as long as there are checks in the checkbook, you can just write out what you want.
Have age-appropriate discussions with your children about basic finances. If you give them a small allowance each week for chores, they will learn how money is earned for the things they want. Show them the value of saving money for bigger ticket items. When they get older, they will see how important it is to live on a budget.
Dutch Treat Items
As your children get older, they will probably get a part-time job. Teach them financial responsibility for the things they want by matching funds. For example, when your teens want a car, tell them that whatever money they earn toward it, you will match. Instead of handing over a free car, your children will be more grateful for an item they worked to purchase.
Teach The Difference Between Need and Want
We have those silly advertisements on television to thank for our kids wanting the latest toys and gadgets. The American Psychological Association states that over $12 billion a year is spent on advertising geared toward children.
As parents, it is our job to teach kids the difference between the things they “need”, and things they only “want”. If something is not necessary for daily living, it is a want. Tell your kids that it is okay sometimes to have some wants; however, they need to save to get them.
Show Them How To Bargain
Even little ones can help you clip coupons. Show your kids how your review store circulars, and check out sales. They will learn how to be patient and buy things when they go on sale. When planning a family vacation, show them how to hunt for bargains. There are plenty of sites where you can find discounts on Disneyworld tickets and hotels. The family that saves together has fun together!
Teach Children How to Upcycle
Let your children’s imagination reach to the stars when you teach them how to make things from everyday materials. Back in the old days, many kids made their own toys from things they found around the house and outside. Instead of just throwing things away, try to find other uses for it. Not only will your kids have fun, but you will be saving stuff from ending up in a landfill, says howstuffworks.com.
Some of the prices on items in department stores are shocking. You can often find the same quality items gently-used in a thrift store. Introduce your kids to the wonderful world of second-hand shopping. You can find everything from name brand clothes, toys, and household items in a thrift store at a fraction of the cost. Keep your eyes open for garage sales around your neighborhood. Your children can find all kinds of good things cheap.
Your children will follow in your footsteps. If you teach them financial responsibility at a young age, they will flourish as an adult. Frugal living is a vital skill that all families need to learn and follow. It can mean the difference between being debt-free or wallowing in bills. You want the best for your children, so it is up to you to train them well.If you enjoy the content at iBankCoin, please follow us on Twitter