The holidays are about giving, sharing and good cheer. The days leading up to them, however, can put money-management skills to the test. And that makes the holidays a perfect time to teach your teen about saving, spending and giving.
• Lesson 1: A budget helps set priorities. From groceries and decorations to gifts and travel expenses, involve your teen in divvying up the family holiday budget. Be honest about what you can and can’t afford this year, and welcome their suggestions about what to cut from the budget.
• Lesson 2: Credit isn’t free. If you put some of your holiday purchases on your credit card, take the opportunity to explain to your kids how credit card interest is charged. When going over your monthly statement, explain the difference between minimum due and paying it off in full.
• Lesson 3: Gifting within your means. If your teens don’t have enough money to gift everyone on their list, offer suggestions on how to stretch what they do have, such as looking for holiday sales or online “deal of the day” offers. Or suggest a fun gift exchange for family members, or host one for their friends, where everyone draws a single name a few weeks before. Set a price limit so each person gets a gift of the same value.
• Lesson 4: It’s the thought – and effort – that counts. Show your teen that creative gifts can be more valuable than expensive ones. A handmade scarf, a framed personal photo, hand-painted song lyrics on a T-shirt, or an IOU for computer help may cost less than a store-bought gift but mean much more.
• Lesson 5: ’Tis the season for gratitude and giving. The holidays are the perfect time to remember those who are less fortunate. Chip in to make a family charitable donation, contribute to a toy drive, or spend time volunteering together as a reminder of what the season is all about.
• Lesson 6: It pays to wait. With heavy holiday advertising, it’s easy to fall into the “gotta have it now” mentality. Remind your kids that gift money can go further during Boxing Week, or if they save part of it towards big purchases or other long-term goals they have planned for the new year.
