Parents often keep the finer details of our financial situation away from children in an attempt to shield them from the harsher truths of life for as long as possible. However, that is not always the right approach, since it can lead to children growing up as financially irresponsible adults. Here is why you should teach your child about sensible purchasing and how you can go about it.
Why You Should Teach Your Child about Intelligent Consumership
A child that understands the value of money well, grows up to be a financially responsible adult who doesn’t overspend on credit cards and keeps true to budgets. As human beings learn things the best during their early, formative years, parents should start money management lessons with the help of wealth management planning services early. The simple basics of intelligent buying tactics will actually increase your child’s chances of being successful in life, as well as enable them to handle real-life financial situations.
Teach them the Value of Comparing Prices
In any sector where business is booming, there will be competition, given that in the absence of competition, the market would become a monopoly. If your child wants a particular toy, show them how the price tag differs on the same toy, depending on which eCommerce website you are browsing. Tell them to keep an eye on the price tag every now and then, so that they can learn how price changes in line with the time of the year, the release of a new product, or any other applicable factor.
Don’t forget to show that offline shops have different price tags as well. Teach them to always compare prices first, before buying anything. The idea is to use the existing competition between businesses, and get the most for your hard-earned money, or in this case, perhaps a child’s pocket money!
Explain the Concept of Comparing Options and Alternatives
The next step would be a lesson in comparison with alternatives. Instead of just comparing prices on the same item, tell them to look for similar alternatives to what they wanted originally. For example, if you search “insurance brokers near me” on Google, the search engine will show you a number of options. They can go directly to websites like Quotezone and compare the policies, providers, and their respective quotes, whenever they are on the lookout for ‘insurance brokers near me’. Their unified and unbiased platform just makes it easier for comparing insurance quotes than looking blindly through search engine results without guidance or organisation. Not the most exciting lesson ever, but a valuable one for life.
Guessing that your child will most likely not be interested to know about insurance quotes, keep the same concept in mind and tell them to look for more options similar to that toy or device they wanted. Perhaps they will find a better product from another manufacturer but at only a slightly higher price tag, which would teach them the concept of being a cost-effective buyer.
Children copy adults and that’s pretty much a fact of life. So, the financial actions you take and let them know about intentionally will be embedded in their psyche from an early age. This means that if you are a sensible adult with a good head for financial management, your children will learn the same from you.