When working with a limited budget, many parents will hide the option of obtaining an emergency cash advance from their kids. Instead, why not look at this as an opportunity to teach your children.
Here are 6 amazing tips to help your kids understand the value of money:
- It pays to compare.
When you go grocery shopping, encourage your children to find the best deals. While it might take you another fifteen seconds to find the cheapest price, the time commitment is minimal and the savings are substantial.
- Coupons are valuable.
Just like comparing prices, clipping coupons is something that your kids can help you with. Again, the time commitment is low but over time the savings will be fairly large.
- Planning ahead pays off big.
Whether you’re taking a family vacation, celebrating a birthday or holiday or even going out as a family with friends, the money needs to come from somewhere. While taking out an emergency cash advance is one option, you can also teach kids how to plan ahead and cut back in other areas to create a budget for the special occasion.
- “Prepare” for impulse buys.
Like special occasions, every now and then having a small impulse purchase is very enjoyable. But if you’re taking money out of a necessity’s budget category to make the purchase, you’ll come up short at the end of the month. Teach kids by building in a small “anything” budget so that when you do get the impulse, you’ve got the funds for it.
- Money can’t be spent more than once.
Telling your kids that they can’t go to the movies because you don’t have the $50 to spare on tickets and concessions might not make sense when they see you spending $100 on groceries the next day. But the $100 is a budgeted expense, while the $50 for movies isn’t.
- Money isn’t always necessary to get what you need.
If you’re short on funds and need to find a gift for a birthday party, there are many ways to create a great present without spending much. Teach kids that making a gift by hand or a used book is two of many options.