Savvy Shopping Steps
We're back with ways to incorporate Bizainy Business into your family summer fun. (See our recent posting: Bizainy Lemonade Stand Inspiration) If your kids and teens have earned money this summer, from a lemonade stand to a summer job, they probably hope to reward themselves with a shopping spree to celebrate their hard work. Here are discussion topics to make the shopping process both fun and educational.
Smart Shopping - How Will Your Kids Reward Their Hard Work?
Did you know that discussing what your kids and teens wish to do with their newly acquired funds can help your children develop money management skills that set them on a path to becoming financially responsible adults!? A university study found that "Students exposed to cumulative financial education show an increase in financial knowledge, which drives increasingly responsible financial behavior as they become young adults, such as tracking expenses, paying credit cards in full and saving money each month".1 So let's get to some skill-building shopping!
- Spending Covers Everyday Needs and The Fun Stuff, Too- Many kids and teens truly enjoy spending money. Kids at every age can certainly benefit from being reminded that there is a difference between spending your earnings on Needs (things required to survive) versus Wants (the fun purchases).
- Spending Is A Choice- Help your children appreciate that while there are certain basic necessities that most people must purchase, how we spend our money is a personal choice! Some people may choose to live in a moderately priced apartment so they can afford to pay for expensive hobbies such as travel or adventurous activities. Other people may choose to prioritize their children's education over buying new clothes for themselves. People have personal preferences on how to spend money on both wants and needs. What are your family's preferences? How do your kids want to divide their spending money between wants and needs?
- Spending With A Budget In Mind- At Bizainy, we help kids and teens develop their personal money management philosophy by allocating funds in the categories of: Spending, Saving, Investing and Donating. Today we cover the Spending category, specifically savvy shopping. Talk with your children about how much money they earned. What percentage of the money do they wish to spend? (We like to suggest 50% for Spending. We'll discuss more on Money Allocation in upcoming blogs). Based on how much your children wish to spend, what do your kids want to splurge on? Younger kids might want to buy the latest toy, while teens might appreciate new clothes or electronics. Whatever they chose to buy, your kids will feel a great sense of accomplishment when they purchase something with their hard-earned money!
- Prices Range Depending On Where You Shop- For both our needs and wants, there are alternative venues to shop that make purchases more or less expensive. Challenge your kids to find their wish item for the lowest price. You can even reward their efforts by matching how much they save. Encourage them to Comparison Shop by researching prices at various retailers and etailers such as: mass merchants, warehouse clubs, department stores, toy stores, electronics stores, grocery stores, drug stores, corner stores, health foods stores and online stores. Talk to them about what they discovered, and how they can use Comparison Shopping to save money in the future. Even teens find this exercise awakening, so take the Comparison Shopping challenge.
- Prices Can Fluctuate Over Time- Have you read about people who make a career out of coupon cutting and can save ridiculous amounts of money on shopping per year? Help create young Smart Shoppers who embrace the habit of doing research to save money on their purchase. Challenge your kids to seek out coupons, discounts, and promotions to save money. Many stores have sales throughout the year, and Back to School sales are currently in full swing. Recognizing promotional patterns can help your kids be savvy shoppers who know how to maximize their hard-earned money. Let your kids realize that the smarter they shop, the more they can buy!
- Prices For Similar Items Can Differ Dramatically- Are your kids familiar with Brand names versus Private Label products? Hold a family blind taste test to see if you can tell the difference between a brand name favorite soda, cookie and cracker versus the store brand product. Ask your kids what they truly want in a product. Does your daughter care about that designer boot name or is she fine with getting a similar-looking shoe for less? Is your son particular about having a specific brand name featured on his t-shirts or would he be just as happy having a less expensive t-shirt without a brand name? Help your kids explore what they value in a product and make their shopping choices accordingly.
- Let's Hit The Mall- Now that your children appreciate how to be Savvy Shoppers, it's time to reward their hard work by taking them to spend some of their summer earnings. Encourage them to bring a wallet full of their money so they can have the satisfaction of making the transaction themselves. Let your kids feel the wonderful sense of accomplishment when buying something with their hard-earned money.
Have fun with your shopping experience, and remember that a smart shopper today can be a financially responsible adult tomorrow!
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