10 easy frugal lessons to teach your kids
By Aaron Crowe
Parents teach their children how to read, ride a bike and tie their shoes because they know their kids will rely on these important skills throughout life. For exactly the same reason, they should also teach their children how to be frugal.
But parents must be careful how they approach these lessons. Going overboard with frugality can send the wrong message. Think twice before buying cheap raisin bran cereal in bulk and spending hours picking out the raisins – as one Reddit user did with his son – simply because it’s cheaper than individual boxes of raisins. Doing so probably won’t be a cherished childhood memory for your kid.
Lecturing your child to be frugal might not be much better. No matter how many times you explain that turning the lights off after leaving a room will lower the electricity bill, it’s unlikely to get the job done.
“The most important thing is parents need to lead by example,” says Dr. Taliba Foster, a child psychiatrist who has a private practice in Ardmore, Pa., a suburb of Philadelphia. “Being frugal is more of a lifestyle, not a lesson. It has to be part of the family lifestyle.”
Instead of telling your child that saving money is a good habit, show them why and how. Delaying gratification is one way to show kids the benefits of saving money. Take the money you would use buying a toy that your children beg for at the store and save it for a family vacation several months down the road.
Parents have many other ways to teach their children about saving money. Here are 10 easy lessons you should try:
Set a savings goal. By itself, a savings goal doesn’t sound like much of a way to be frugal. But a goal, such as saving for a vacation to Disneyland, can be a way to get kids to see the benefits of saving money for other purposes. Foster, who has an 8-year-old daughter, says she uses this when her daughter wants something at the store. If they decide it’s a “want” instead of a “need,” Foster will point out that the money would be better saved by the family for a Disneyland vacation.
Since children want to please an authority figure during preadolescence, it’s a key time to try to teach them smart financial habits, she says. “Right now, they’re really ripe for following rules, the difference between right and wrong,” Foster says.
Get a library card. Going to the library to check out books and DVDs is a habit every family can use to save money. It saves on buying books and renting movies, even though it may take a few weeks on a waiting list to get the latest releases.
Kristen Hagopian, a talk-show host in Philadelphia with two children, ages 9 and 6, estimates that a family of four will spend $720 a year if they share a tub of popcorn and two large sodas while watching a movie at the theater once a month. The same family will spend $180 a year, she says, if they buy a $15 DVD each month. Watching movies for free at home is clearly a lot cheaper.
No drinks. When you do go out to eat, show your children the price difference when you order water with your meal instead of buying a drink like soda, juice or lemonade. Jamie Ratner, founder of Certifikid.com, a deal site for parents, says she never ordered drinks when she was growing up. Now when she takes her children, ages 4 and 6, out to restaurants they have free water. “We save a fortune on our tabs at meals just by getting water,” Ratner says.
Price comparison. Showing a child that time is worth money can be difficult, but comparison shopping can help get that message across to them. The more money saved, the less you’ll have to work for that money. The less you have to work, the more time you can spend with your family or doing other things you enjoy.
Read the entire story at US News & World Report.