We are officially in the holiday season. This means, we are bombarded with holiday party planning, gift shopping, travel planning, holiday meal planning and much more. In this holiday craziness, there are many opportunities for us to teach our children about money. AbbyBank wants to help you identify these common scenarios and take advantage of the excellent financial learning that can take place!
Determining Your Holiday Budget
Some of you may already create a budget each holiday season, but for those of you who are not, this is a great way to start budgeting for the family. Start by discussing all items that must be purchased for the holidays including gifts (for who and how much), cards, holiday letters, holiday meals, etc. Determine what your spending limit is for the holidays and then break each item on your purchase list down according to how much you can spend on each category.
Involving your children in this discussion will help them understand that money is finite and you must determine how your money will more effectively be used. We recommend helping your children further understand budgeting by asking them to write a list of everyone they’d like to give a gift to and the amount they’d like to spend.
Making Holiday Gifts
Another financial learning opportunity is in making holiday gifts as a family. You can do anything from making cards, picture frames or ornaments to fun food gifts. Involve your children in the planning of these gifts, including how to make the gifts and how many gifts you are making. Then determine and assign jobs to each family member.
Your children will learn how mass producing gifts can dramatically cut down on the cost per person for a gift, and they will see the joy in giving someone a gift that their family made.
Tracking Holiday Spending
Our final recommendation is to involve your children in the act of tracked spending. After witnessing you creating a budget for holiday spending, your children will greatly benefit from watching you stick to your budget and tracking the actual holiday spending. When you end up under your budget, you can also show your children how you use that extra cash. This could be in the form of a savings jar, extra spending in another area or giving to charity.
These lessons help everyone in the family realize that the holidays are about much more than just receiving presents and are a prime time for growth. If you would like to set up a special account for holiday spending, give us a call today at AbbyBank!