Have you ever been in a store with your child when s/he had a complete meltdown because you refused to buy something s/he saw and wanted? I know I have, although thankfully it’s been a number of years since my children are now 17 and 19. What do you do in that completely mortifying situation when everyone is looking at you and judging your parenting skills? Do you give in to quiet your child so you can finish your shopping? Do you say no and continue shopping with a screaming child? Or, do you leave the store to avoid the shame without completing what you went there for in the first place? Personally I was guilty of all three approaches at one time or another until I figured out a better way.
This technique not only makes running errands with your child easier, it teaches even very young children essential lifelong finance skills. Before going shopping with your child determine a reasonable amount of money to give him or her. You want the amount to be small enough that you don’t care how it is spent, but large enough that it can be used to purchase something. When you are in a store and your child sees something s/he wants, state that s/he can buy it with his or her own money if it is within the dollar amount you have set aside, or s/he can save the money for the purchase until s/he has enough to buy the item. If your child does decide to save the money make sure you reward that choice by continuing to give the same amount of money each time you run errands with him or her so the desired item is eventually affordable.
Keep in mind that when young children want things in stores they genuinely want it at that moment, but what they really want more than the item itself is some control (this is also true for many older children and adults). For that reason, it is best if parents let children make their own spending choices even if they are choosing to buy something you would never agree to buy. The only exception should be if the item your child wants to purchase poses a danger. That’s why you set spending limits by determining the amount of money to give your child.
Not only does this teach children the following good financial habits, it makes running errands easier on you, the parent. It also works with children as young as three.
The good financial habits taught using this technique include learning …
1. The value of coins and bills.
2. How to count money.
3. The benefit of saving.
4. To make choices about spending.
5. The difference between using one’s own money versus using other people’s money.
If you decide to try this technique with your children, please let me know how it works for you. It worked wonders for me with my children.
