Teach Children Good Gift Card Spending Habits

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Home For The Holidays

Teach Children Good Gift Card Spending Habits Courtesy of ARAcontent

(ARA) - Wrapping paper, bows and ribbons are littering your family room, the adults are holding their tummies and settling down to digest the big meal and children are everywhere, ready to play with their holiday presents.

But this year they received several gift cards, which also means it’s time to schedule a shopping trip. They, of course, know on which item to spend their money when it comes to that action figure or the perfect pair of jeans. Since good financial education starts at home, what better way to help teach your children the value of their gift dollar and getting the best deal on what they want? Some tips can be found at www.YesYouCanOnline.info, a financial education program from American Century Investments:

1. Look for deals to stretch that gift card.
Check the newspaper and online ads, especially during the last week of December when retailers are attempting to clear their shelves. If your child has a list of toys they want to buy from one retailer, have them write their gift-card budget down on a piece of paper and calculate what they can afford compared to what they want. Show how much farther their money reaches when they add the value of coupons and discounts.

2. Investigate the toy or item they want to purchase.
Just because a toy is on the retail shelves doesn’t mean it’s completely safe. Research the toy with your child using manufacturer and other Web sites looking for recall notices or information about materials included in the toy. The Consumer Product Safety Commission is an excellent source for information about product safety.

3. Remember to set an example.
You probably also received some gift cards for the holidays as well, and children learn first from their parents. Talk with them about what you plan to use the card for – whether it’s going toward a special present you’ve been eyeing for some time or maybe a necessity item you’ve had at the back of your mind. Discuss the difference between a want and a need and explain to your children why you used your gift card in the way you used it.

4. Have a back up plan.
You may find the item you wanted is out of stock, or not quite what you hoped for when you set out on the shopping adventure. Having a list of “other items” you’ve been thinking about is sometimes helpful to keep from making an impulse purchase that may result in remorse shortly there after.

“The best time to teach kids about money is early in their life,” says Scott Oberkrom, director of Community Investments at American Century Investments. “It’s easier to create healthy financial behaviors than change unhealthy financial habits.”

This holiday, take the opportunity to work with your children and help them to stretch the value of their gifted dollars.