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Spending Teaches:

• Difference and balance between wants and needs
• Opportunities for comparing alternatives
• Making decisions and taking responsibility for them
• Keeping records

Teaching Aids for Spending

• Let children make mistakes and learn from the consequences. Make sure children know you’ve made some mistakes, too.
• Explain what quality, availability, and other comparison factors mean. Don’t assume they know what these terms mean.
• Let your child know you know you can’t afford to buy everything you want, either. This could be brought out while window-shopping together.
• Explain the bigger financial picture. For example, a movie involves not just the price of admission, but gas for the car, popcorn, pop, time and energy. This will help them be more aware when making financial decisions.
• Communicate about money. Include children in family financial decisions and discussions appropriate for their age. This helps them feel valued and tells them that money is not a taboo subject.