The grocery store represents one of the best training grounds for teaching children about money. At the grocery store you have all the paradigms of life contained within the aisles of the store. Today let’s consider what happens when a mother takes her 10-year-old daughter shopping at the local supermarket. For today’s example, the mother is Carolyn and the daughter is Amy.
The first thing Carolyn and her daughter Amy did was set a budget and create a list of items they needed. Carolyn had read about teaching kids about money and she wanted to use today as her first lesson. After creating the big list, Carolyn helped Amy create her own list and her own budget for the things she uses most around the house. Amy was responsible for selecting the items that she believed would satisfy what was on the list. They would periodically compare their list and her budget to see if they are on track and also to see if they are getting good value for their money. Amy, all excited, walks into the store with visions of cocoa balls and all the brand name items dancing in her head. Like any typical 10-year-old would, Amy began collecting all the items she remembered from seeing the commercials on television. Her thought was that if she’s on TV, she must be the best.
After picking up the first few items, Carolyn noticed that they were all name brands, and in this case, they were also the most expensive. Carolyn asked Amy to count how much she had spent herself. When Amy realized how much she had spent, she worried that there were still so many items to buy. Carolyn instructed Amy to find another item in the same area that would fill the need but cost less. Amy went back and noticed that there were many similar items, some for less and some on sale. Amy was concerned that it might not be of the same quality as the brand name, but she realized that she could get more and she could get the other items on the list. As Carolyn and Amy continued to shop, they got everything they needed on their list, including some name-brand items, and stayed within their budget.
When Carolyn got home, she wanted to take this experience and turn it into a valuable way to teach Amy about money. The first thing they did was look at how much money they saved. When Amy looked at her list and her budget, she realized that she had everything she needed and that she still had $10 left over. Carolyn allowed Amy to keep $3 of the $10 to do whatever she wanted, and she saved the rest.
This is obviously a fictional story, but there are some great lessons you can use to teach kids about money. It is very important that children understand the importance of budgeting and staying within your budget. Children rarely understand the value of money because they usually don’t have to do anything to get it, and parents often buy them what they want. The next time you go shopping, don’t just rush through it but turn it into a real world classroom and hopefully your kids will be better off with the lessons they learn.
