August 2011

Back-To-School Shopping is the Perfect Time for Children to Learn about Money

Moving In
According to a National Retail Federation survey released in July, total back-to-school spending across the nation, including for college students, will reach $68.8 billion this year. The second biggest consumer spending event behind the winter holidays offers the ideal opportunity to teach children and young adults about money. Here are a dozen ideas to get you started:
  1. Stores will generally provide a list of supplies surrounding schools suggest. Begin with that list or one you make yourself and explain that with a list you can comparison shop for the best price and curb impulse buying.
  2. Teach children the value of thrift by rounding up supplies such as pens, notebooks and calculators you may already have. Inquire with your student’s school if there are any local venues or programs that are giving away free or reduced-priced supplies.
  3. Prove to children that who they are is more important than what they can buy. Buy plain notebooks which typically are more cost effective and let children make it uniquely their own with inexpensive stickers or a drawing. Recycle and reinvent backpacks and lunchboxes with zipper pulls or patches.
  4. For young children, gather up all the loose change to show them how money adds up. Young children can enjoy choosing basic supplies themselves at dollar stores.
  5. Help children distinguish between wants and needs. Go through the closet and determine what clothes must be replaced and donate gently-worn clothes to charity before replacing them with new ones.
  6. Savvy shoppers learn to wait for the sales and more than one-third of the states offer tax-free shopping days on items such as clothing and supplies.
  7. Teenagers are projected to spend an average of $31.64 of their own money and pre-teens will kick in an average of $15.12. Create a budget and share it with older children and perhaps offer to split savings if your shopping comes in under budget.
  8. Determine just what features are needed for computers, calculators and other electronic equipment to demonstrate how extra bells and whistles can increase the price. For high-priced items, consider getting an older model or used item.
  9. Comparison shop and know the price of the items on your list. Explain why one deal is better than another. Avoid marketing tricks such as when stores prominently display items that usually cost $2.50 with attention-grabbing signs announcing "2 for $5."
  10. Sometimes it pays to go in search of the bargains. Some consignment stores offer uniforms and thrift stores offer bargains on belts, purses and accessories that can update clothes in your child's closet.
  11. Savings is not a one-day lesson. Create a place where scrap paper can be kept and used throughout the year for rough drafts of homework.
  12. Parents can also learn about money in accepting that the less expensive item is not always the one offering the most value. One designer label shirt may last longer than one from the discount store and the more expensive outfit might be worn more than a less-expensive one that stays in the closet.