We need to make a concerted effort to help our children become smart shoppers. Children are easily influenced in their shopping decisions. Kids are heavily targeted by advertisers hoping to score big sales. My children often want whatever toy was on the last commercial they saw on TV or that they last played with at a friends house. Impulse buying can lead to serious financial consequences.
It is our responsibility as parents to teach our children to make smart choices. We need to teach them from an early age to look through the advertising to see the truth about products. Our children need our help learning these lessons.
How we can help our children become smart shoppers
I am convinced that it is possible to guide our children to become smart shoppers. I think we need to start early and let them know our thoughts on financial matters. Here are my suggestions:
1. Set a good example with personal finances
Our children learn a lot more from our actions than they do from our words. They watch every move we make. It is crucial that we set a good example. How are your finances? Do you overspend? Is this the path you want your children to follow?
The holiday season is an excellent time to talk to your children about the limits you have set for spending. Let them participate in the process of selecting gifts that meet the budget. If they see you doing this now, they are much more likely to carry it forward when they are adults.
2. Walk them through the mental process of evaluating products
Teaching your children to discern the true features and value of advertised products is crucial. They need to learn that not every toy is as fun at home as it appears on TV.
One way we do this is by asking leading questions. When a toy is shown on a commercial that our daughter comments positively about, we often ask a question that leads her to see a weakness she wouldn’t have otherwise noticed.
We also remind our girls of similar toys that now lay buried in their closets somewhere. Helping children to think more critically is an important part of teaching them to be more intelligent consumers.
3. Let them make some mistakes while the consequences are low
It is better that our children learn now through some mistakes to be smarter shoppers. The consequences of buying a bum toy is low compared to the consequences they might suffer later from buying a lemon car. Learning through mistakes now will teach them discernment that is invaluable for adults.
We need to provide guidance to our kids, but we also need to give them the opportunity to learn from some mistakes while the consequences aren’t too painful. The lessons they learn from spending a few dollars on a toy that doesn’t last is one that will stick with them.
4. Give them some fiscal responsibility early
I believe that kids need the opportunity to start managing and learning about money as early as possible. A child that is 3 or 4 can start to understand the value of a dollar. Start feeding their minds when they are still little sponges!
I believe that they kids need to earn their money. I think it helps them to understand how the world works. We don’t give our children an allowance. If they want some money, then they have to work to earn it. This is how it works in the real world and it is how it works in our home.
The tasks don’t have to be hard for a very young child, but they are completely capable of picking up some toys, getting dressed, and helping with other tasks.
5. Think out loud about your purchases
I like to let my children hear my thought processes when making a purchasing decision. My wife and I think out loud by verbalizing our decision-making process. Sometimes we even involve the kids in helping to make the choice.
To me, this is training for their young minds. So far, it seems to work. I hear my oldest daughter echo back some of the same thinking when she is trying to decide on making a purchase. It is great to see that she already gets it!
Smart shoppers are not born, they are trained!
Train your kids to be a smart shopper and it will serve them well their entire lives. I believe it will not only help them in their personal finances, but will also help them be good stewards over business finances as well. The sooner our kids learn good money habits, the better they will do for themselves. Isn’t this what good parenting is all about?
What do you do to teach your kids to be smart shoppers?
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Great advice. The most important thing is to get them involved! They have to learn about shopping from somewhere and it’s better if you’re active with them rather than they pick it up off TV or friends.
Read FFB´s latest article – Carnival of Personal Finance #182 – Don’t Go Broke Over The Holidays Edition