| "Teaching Kids Smart Spending" | | | | experience. |
| Smart spending, a great financial defence strategy | | | | Show him how you make purchase decisions |
| Smart spending goes a long way as we are faced | | | | Point out the opportunities for comparisons and |
| with limited money resource and unlimited wants. For | | | | alternatives and explain how you evaluate when |
| most people, we have more control over spending | | | | making a decision. We live in a world of more material |
| than earning. We get to make spending decisions all | | | | options than ever in history. A tub of ice-cream can |
| the time and making smarter decisions time after time | | | | cost anything from $3 plus to $20 plus. It can range |
| adds up! | | | | from vanilla flavor to green tea flavor. It can be very |
| Smart spending is not about saving a buck or two | | | | confusing for a child. |
| here and there, it's about thousands of dollars which | | | | The most expensive may not mean the best quality |
| over time when compounded, can make the | | | | and the cheapest may not be the best option, |
| difference between struggling financially or being | | | | depending on the nature of the item, the usage and |
| financially free. Your habit of spending on frivolous, | | | | our priorities. For example, I am willing to pay more for |
| non-essential, impulse items can lead your child to | | | | a well fitted classic dress than a fancy trendy dress |
| following suit and it all adds up. | | | | since the trendy dress will be out of the wardrobe |
| There is an opportunity cost for every dollar spent. It | | | | within the year whereas I can wear the classic dress |
| makes sense to get it right and pass on the right habits | | | | for years as I have a consistent figure. |
| to your child. It doesn't matter whether you earn | | | | Different places sell things at different prices. When |
| $30,000 a year or $300,000 a year, what matters is | | | | doing grocery shopping, it usually makes sense to shop |
| living within your means. | | | | at a place that offers better prices. For bigger ticket |
| | | | items, you might want to do more research. There are |
| Keeping track is a habit | | | | many forums online for specific product interest that |
| It's normal for your kids to want things. Children | | | | could be helpful. Show your child how he can do that |
| nowadays get bombarded with manipulative | | | | when he wants to buy a camera or a mobile phone. |
| commercials; and peer pressure does not make it any | | | | Shopping online can mean considerable difference in |
| easier. When your child sees that his friend has a Play | | | | pricing too. |
| Station Portable, you know he will pester you for one. | | | | Consider brand names and their quality and explain to |
| Teach your child to be responsible and track his | | | | your kids. You might be more brand conscious on |
| money. It's a lifelong habit that is good to start from | | | | certain products and less when it comes to others. |
| young. Many adults live through their paychecks | | | | Does the quality and projection of image justify the |
| without having an idea where the money goes. Be a | | | | price difference or are you just paying part of the |
| conscious spender. Keeping track of the type of | | | | product's marketing expense? |
| expenses and getting into the habit of budgeting will | | | | |
| improve money mangement. Get the worksheets to | | | | Live within the means |
| get your kids started now! | | | | It is imperative to teaching your kid to pay himself first |
| | | | and living within or below his means. I have seen so |
| Teach your kid to use a shopping list | | | | many friends including myself in the past earning |
| When you are shopping, it is a great opportunity to | | | | $30,000, $50,000, or even $200,000 a year and |
| teach your kids. Show him how you plan for what you | | | | spending all or even more. If a teenager or young adult |
| need to buy by having a shopping list of the needs and | | | | gets a credit card and spend more than he has by |
| wants. Set a budget. Any leftover could be used for | | | | treating the credit card as an additional source of |
| wants. If it is over the budget, you might want to | | | | money, he will be in trouble in no time. Living a lifestyle |
| eliminate the unnecessary items. It is easy to get | | | | that doesn't belong to one is almost always the cause |
| distracted without a shopping list and chances are, you | | | | of money distress due to credit card debts. Therefore |
| will blow your budget and end up buying wants more | | | | it is always a good thing to teach your child about |
| than needs. You might want to give your child a | | | | credit cards before he goes to work in society and |
| chance to practise. Back-to-school shopping is a great | | | | apply for cards. If otherwise it will be liken to him having |
| chance to get him to come up with the shopping list | | | | a sports car without knowing how to drive. |
| within a budget and go through the whole shopping | | | | |