In a single parent family, money is often a cause of concern if it is not spend wisely. Most of the time, the parent might indulge the children in some wants and reduces the amount of money available for daily expenses. It is therefore important; to teach the children how to cost sensitive and techniques of cost-savings can alert the children to how much they have to indulge in an occasional want.
Here are 5 tips which you can use to teach your children about cost-savings at home.
Teach them the difference between daily needs, occasional wants and future wishes
Young children may not be able to differentiate between their needs, wants and wishes. Teach them the differences and show them the impact of not getting their needs. It is important to emphasize that their needs must be fulfilled first before they indulge in their wants and wishes. Children who understand the differences will make good spending decisions and habits in the long run.
Teach them the value of money
Young children do not understand the value of money. It is just something to exchange for the toys that they wanted. Teach your children to value of money. Explain the difference between $1 and $10 and show them how to use money wisely. A good way in teaching value is to use visuals. For example, you could consider using this method: $1 can buy you a small pack of sweets while $10, will buy you 10 packs of sweets. When children see the impact of value, they will come to understand that money is more than just a tool to exchange for their favourite toys or sweets.
Teach them how to compare prices
Once your children understand the value of money, you can teach them how to compare prices. The supermarket is the best place to compare prices because there are so many similar products. Bring them with you when you next go grocery shopping and show them the differences in prices for similar products. Make it fun by showing them how to calculate the differences and to evaluate if the pricier product is worth buying. Once you make a habit of teaching them how to compare prices, your children will learn to do that on their own, and make wise decisions when making a purchase.
Teach them the wonders of discount vouchers
When your children are familiar with price comparison, you can start to show them the discount vouchers that we can find in our daily newspapers. These vouchers sometimes can reduce a price of a product by 50%, making it a really good deal. Teach your children to look out for such vouchers in the newspapers and when there is a voucher which you would like to use, cut it out and allow them to bring it to the store. Use the voucher with them in tow so that you can show them how it can be used. Do this regularly and your children will soon understand the beauty of discount vouchers.
Teach them about One-for-One deals
This is one of the best techniques to teach your children but they need to be older before it can be taught to them. One-for-one deals are a great way to save especially when you have more than one child. Stores and eateries often have such deals and it is a good idea to show your children the difference in the amount you pay when you utilised the one-for-one deals. Starbucks often has this kind of promotion; so if your children like to go to Starbucks, use it as an educational tool.
The 5 tips above are some suggestions for you to start teaching your children about cost-savings. The earlier you start to teach your children about cost-savings, the better they will become at making wise decisions on their purchases as they grow older.