Article By: Kelly Kirk-Xu & Emily Stevens
“Giving” is a huge part of building financial literacy, right? We want to share with others & show our appreciation through the act of “giving”. However, if you have ever had to budget for buying gifts for your loved ones, you know that gifts add up fast. It’s easy to spend more than you expected, getting carried away with your love for others. Gift budgets will follow you throughout the year as birthdays, anniversaries, celebrations, and holidays come and go.
To begin, you may want to have your child write a list of the people they’d like to give gifts to and what they would like to get them. This will help you and your child get a better idea of how much money you should be saving to meet this goal.
Once you have tallied up the total of the gifts your child would like to give, you can now create a realistic budget for them to stick to! Whether you are having your child save their own money or giving them a set amount they can spend, helping them understand that everything tends to cost money, whether they buy it or make it at home, will help them on their journey to master their money!
Kids tend to be great visual learners as they are still learning about numbers and letters. If your child is working to save their own money, having them categorize their money will help them get a greater grasp about budgeting. While some categories may include savings for a specific toy or trip and spending money, you can also create a category with gift-giving money.
When it comes time to buy the gifts, your little one may become tempted by the alluring things scattered throughout the shopping center. Remind them of their original goal and encourage them to stick to the plan. Gift-giving is a fulfilling and wonderful thing. As your child learns how to give without going over budget, they will become that much closer to understanding the value of money and grasping the concept of finances.