There's no getting around it; we all have to spend money on things we need and want, but most of us don't have an infinite amount of money. It's important, therefore, to prioritize spending to live within our means. Help your child understand the importance of wise financial decision-making.

Activity

Next time your child wants to buy something, walk him/her through the steps of smart spending through prioritization:

  • Discuss how important the item really is to your child.
  • Discuss the cost of the item in a way your child will understand, such as saying that an item will cost two weeks of allowance or one week of extra chores.
  • Help your child understand that once he or she spends money on this item, that money is no longer available to be spent on another item.
  • Help your child comparison-shop at a few stores or online to find a better bargain.
  • Finally, allow your child to make the ultimate decision of whether or not to buy the item.