Financial Literacy

Keep up with the latest tips and ideas for building a brighter financial future.

As financial educators, a big question we get from parents is about kids and money. How do I talk to my kids about money and instil good financial habits in the face of the pandemic?

My answer always includes ideas on situations they will face or money factors for the time of year. Make the conversation you have relevant to their currently reality, or experiences they may have in the future. The holiday season can be a great backdrop for helping you start the conversation on saving, budgeting, spending, charity and credit. Even if you do not give gifts at Christmas, you cannot miss the advertising, spending and extravagance of the holidays.

Here are some things you can do in theory or practice to teach your child about holiday spending. Try all of the steps, or incorporate one or two based the age and attention span of your child.

  1. Make a list (check it twice 😊) of the people they would like to buy for, and what they would like to buy. Ask your child, why would you like to buy the item for the person? Why do you think they will like it?
  2.  Write down what they would expect each item on that list to cost. This can be completed by searching on-line or going to a store.
  3. Determine their holiday spending budget; how much do they have to spend? For instance, will they save up their allowance?
  4. Add up both the cost of the listed items and the budget amount. Ask your child, do they match? Is your holiday spending more than you have? Will you have money left over?
  5. Pick a cause. Have them donate their time, a toy, cash, toiletries, clothes, food etc.  Not all donations will cost money, talk about options and which ones may suit your child best.

The question may come up about what to do if you do not have the money for the holidays, your child may even ask to borrow from you or borrow from future allowances. Whether you decide to or not, have the conversation about what borrowing means, and how they will pay back the money. You can make up a payment schedule and discuss what having less money may look like, when you are trying to pay back money that you owe.

Best Books for Teaching Kids About Money: Our Top Picks

Developing good money habits young will go a long way. A parent’s job is to guide their children into making good financial decisions based on the current circumstances.

Related Blog Post: Best Books for Teaching Kids About Money: Our Top Picks

We would love to hear some of your ideas! Tweet us using the hashtag #MoneyTalk and let us know what has worked for you!

Submitted by: Tamara Kelly, Credit Counselling Services of Atlantic Canada

Share this

Twitter

Cozy up this Fall, as you enjoy the colors and joys of the season, while sticking to a smart-spending budget! Our non-profit credit counsellors can help craft a custom plan for you!

https://t.co/naXxUqzdIU

#Fall2021 #NewBeginnings #BeDebtFree https://t.co/mUeyuSTwsu
Creditcc photo
Children playing amongst the fallen leaves, the aromas of the season filling a warm kitchen, and so many fun things to do outdoors during the Fall! Here are some ways to make this time as much fun, while keeping a tab on your budget!

https://t.co/ZiDtcTyT04 https://t.co/0y3iXF47j0
Creditcc photo
A new poll suggests that nearly 40 per cent of Ontario residents report worsening mental health due to financial issues caused by COVID-19. Watch @CP24 interview with Stacy Yanchuk-Oleksy, CEO @Creditcc

https://t.co/2WHhyFNy6O
Before you think about talking about a Consumer Proposal, research shows that Canadians on a Debt Management Program have the highest credit scores over those who filed a Consumer Proposal or for bankruptcy.

https://t.co/naXxUqzdIU

#BeDebtFree

https://t.co/U3sSRhMTJ1 https://t.co/VoWnt9a15Z
Creditcc photo
A survey by @Creditcc outlines the impact of housing, income and employment insecurity on Canadians' mental wellbeing. @CAMHnews

Click below to read more.

https://t.co/GVXUwv0CXz https://t.co/7WllzHLKZZ
Creditcc photo
Four out of ten Canadians don’t know where to turn for help with their debt. If that is you, you are not alone. We can help. Our non-profit members are here for you!

#debtfreelife #financialadvice #debthelp

https://t.co/G3IGbTv4pf https://t.co/Ipm73SqIO5
Creditcc photo