Nothing like stepping into stores filled with busy people, loads of stuff to buy and loud Christmas carol music during the holidays, accompanied with a bunch of toy-thirsty kids, to get your lifetime financial education in check…All the while realizing how much you need to teach your kids about the all-important fact that global warming notwithstanding, money still doesn’t grow on trees/wallets/purses/piggy banks, etc….
Let’s be real, holiday cheer aside, the “most wonderful time of year” is also the most commercial time of year, especially for anything kid-related. Which means you may have to start slipping a word or two to your kids about the fact that just because you have a purse doesn’t mean it’s filled with money. And that if we could buy the entire store worth of toys, we wouldn’t be frantically clipping BJ’s coupons every weekend…Just sayin’…
But are the holidays really the best time to teach kids about money? Isn’t it supposed to be a time of happiness, and cheer and… record spending? Must we ruin the mood and start giving out lessons on the importance of fiscal responsibility to little people who still believe in the magic of Santa Claus and TV toy commercials?
There actually isn’t a better time to do so…And if you ask me, here are a few lessons every fiscally-concerned parent can pass on to their kids somewhere in the midst of Christmas carols and finding a new spot for the Elf on the Shelf:
Lesson #1: Start with what you have!
Start at the beginning, that is, with what you already have. I remember growing up in Senegal, West Africa, and celebrating Christmas in the simplest of ways. Not because we didn’t have enough, but because we had a whole lot more than many around us…
Have your children look around over the holidays and make a quick inventory of everything they have, from a roof over their heads to food on the table and toys they even forgot about. Make it a game to see who comes up with the most items to be grateful for. Then explain how all this “stuff” they have costs money too.
The sooner they understand that pretty much every material thing around them is obtained with money, the sooner they realize its impact.
Lesson #2: Want What You Need!
My mother used to perform an audit of mine and my siblings’ Christmas lists before mailing them to Santa. And the recurring question as she’d carefully scan our wishes lists would always be: “Hmmm…I wonder if Santa’s going to ask if you really need this?”
Which of course in our cute little curly heads didn’t add up at all at the time…Isn’t Santa just supposed to be a wish-granting machine? No one has ever mentioned the new implementation of a “wants vs. needs” system…At least, we didn’t hear it in the news…
Yet invariable each year, my siblings and I would get more of the stuff we really needed vs. the stuff we wanted. Santa’s administration was being overhauled…
How about asking your kids the same question? What do they really need as opposed to just wanting it? Ask them about how they would use the items on their list and how that would help them and others? The sooner they learn to make the difference between what they need vs. what they want, the easier it will be to learn about how to spend their money (and yours)…
Lesson#3: The name of the game is “Earn It”!
Your kids see you going to work every day, or striving in your own business to earn an income. Similarly, they may earn their allowances by doing some chores in the house, or keeping their grades up, or even behaving exceptionally well.
The principle should be the same during the holidays. Have they earned their (long) Christmas gift lists? What have they done to deserve all that “stuff”? Along with their Christmas list, ask them to also make a list of all the positive things they’ve accomplished throughout the year. Some of their answers may have you stitches…
Then, if your kids are slightly older (10 and over), ask them to name a few people they admire who’ve created great things. They may be able to come up with names like Steve Jobs (Apple), Mark Zuckerberg (Facebook), Walt Disney (Disney), etc…They may have to google some of these names, but all in all, it should be a fun and educational game for the whole family to play.
At the end of the day, you want them to link money and rewards to actions. The more positive their actions, the more money and rewards they’ll be able to earn…
Lesson#4: Look Into the Future!
“I want it NOW!” How many times have you heard your kids, or any kid for that matter, say this? For most kids, the here and now is really all that matters. Especially during the holidays…But it’s also a great time to teach them about investing in their own futures…
Ask them what BIG dream they have for the future? Do they want to go visit Grandma in Senegal next summer? Or go back to that awesome summer camp they so enjoyed last year? Then introduce the concept of asking for/starting a savings fund to meet that goal/dream/objective. Consider offering them shares of stock into their favorite companies for instance…This will plant the seed of investing into the future for them…
Make it a family game and have everyone share their long-term goals/dreams, and maybe add an item or two in their gift list around investments and savings…
Lesson#5: Giving brings more!
One principle that tends to get overlooked when it comes to educating kids about money is the concept of giving. From tithing to giving money to charities and causes we believe in, giving has incredible power. We give to help others, to sow back into the world, and that’s also how we create channels of prosperity that benefit everyone, us included.
Challenge your kids this holiday season to add a “Giving” section to their Christmas list. Whether it’s donating their time to a soup kitchen, or making handmade cookies for children in need, or buying a toy for another kid, help them link together the concepts of receiving and giving. Make it fun by having the whole family participate as well!
How are you going to teach your kids about money this holiday season?
Cheers!
The Corporate Sis.
