Research indicates that by the age of 12 children have developed many of the attitudes and behavior patterns for money and credit management that they will take into adulthood. Research further supports that only 13% of teenagers ever produce a written financial plan. Ninety-four percent of high school students are likely to go to their parents for financial information.
Teenagers spent $155 billion in 2000. On average teens have access to money and are spending about $141 billion yearly. Yet, research indicates that their financial literacy is low. The holiday season is a good time to teach your children about money. Teaching them how to manage and budget their money for seasonal gifts, for example, can be an effective way to prepare them for financial responsibilities when they become adults.
The holiday season can be enjoyable to some and perhaps stressful to others. Start early and begin planning for the holidays to avoid the frustration. You may find that the holidays will consume more of your time than you realize. A beginning point could be helping your children learn about the marketplace and become savvy consumers through managing and budgeting the money they plan to spend on holiday gifts. Discuss the holiday gift budget. Look at shopping sources, i.e., newspapers, store circulars, bargain announcement flyers, catalogs and the Internet. An alternative could be to teach your child about the values of gifts that are made instead of those bought. Explain the downside of TV advertising and holiday advertising, that bombard the media during the holidays. They usually promote expensive toys, clothing, electronic gadgets and items, and other types of gifts.
An adage says, "What you do influences people more than by what you say." Therefore, lead by example by using rational shopping skills.
Make this holiday season a lesson in personal money management. Your children will learn by your example, when you make wise holiday planning, savings and spending choices.