Moms and Dads only want the best for their children – the best education, the best childhood, the best life. If they could only give the world, they would. That’s why parents tend to overspend when it comes to their kids’ needs AND wants. Don’t get me wrong, there’s nothing wrong with being a great loving parent who wants to give their children the best of everything. However, you should know that love isn’t measured by material things and experiences that come with a hefty price tag.
According to T. Rowe Price’s 2016 Parents, Kids & Money Survey, “nearly half of parents (46%) have gone into debt to cover something their kids wanted, and many say they spend too much on things their kids do not need (57%).”
If you are a parent who is struggling with finances, here are a few helpful ways to stop overspending on your kids while still being able to provide their needs.
Prioritize their needs over their wants.
When it comes to your kids, it can be difficult not to give in when they ask you for something, even if it’s clear that it’s more of a want rather than a need. Well, you got to work on that problem, moms and dads. Think of it this way – by not giving in to their “want” you can give them what they “need,” which is a lot more valuable, don’t you think?
Stay away from name brand items.
I understand that spending on good quality items is wise but there’s a big difference between being practical and showing off. And besides, kids grow so fast – why would you want to spend hundreds on designer clothes?
Make birthday parties simple.
Cake, balloons, food, decorations, party bags and entertainment – add them all and you’ll be surprised with the final costs. Yup, kids’ parties these days can be really expensive. But who says that you really need to throw lavish birthday parties? You can still throw a fun, special and memorable birthday bash for your child without spending a fortune. Read here to learn How to Save on Your Kid’s Birthday Party.
Teach your kids about money.
Instill in your children’s minds the value of budgeting, savings and prioritizing their needs. Make them understand the value of money and where it’s coming from. Having these kinds of conversations at home will surely improve your child’s relationship with money, which is a lifelong habit that they should learn at a young age and something that your personal finances will also benefit from.
Don’t know where to start? Here are some fun and useful tips and tricks to teach your child about saving and spending.
So let me end today’s blog post with this quote from Richard L. Evans,
“Children will not remember you for the material things you provided, but for the feeling that you cherished them.”
