Think back to when you were in high school. How did you spend the money you either earned or received from your parents? Chances are you spent it on some silly things. Like that shirt you wore just once, or the colossal burger you couldn’t possibly finish today. I’ve got news for you. Your kids are wasting money in the same ways we used to! But there is hope. You should help your children identify how they are wasting money and teach them how to make good choices. Here are the top five ways your kids are wasting money today.
Do you have a son or a daughter? This spending area will affect both. Clothing trends are going to vary each year and your kids will be exposed to them. Male or female, they are going to go through fads with clothing. Remember when Abercrombie & Fitch was all the rage? Not so much today as trends have changed. When your teenager says they don’t have anything to wear, this would be a great opportunity to break out the photo album and show them your “clothing purchase mistakes” of the past. That double popped polo collar probably wasn’t popular to begin with, but it will certainly give you and your teenager something to laugh about. If they insist on a particular style, encourage them to find a cheaper brand. Kids are highly affected by advertising, but can generally find the same type of clothing in a lesser known brand. By the way, your kids grow really fast. Unless you want to be in the business of hand-me-downs, this is another topic you can bring up with them.
Your kids are going to find themselves in a number of situations where they want to make an impulse purchase. Part of this can be attributed to peer pressure when they are out with friends and classmates. But, it’s also an important part about being a kid. Your kids need to learn when it is appropriate to make such a purchase. Teach your kids to communicate with you in these situations. Apps like Greenlight can help by providing a simple interface to not only communicate but authorize or decline those impulse purchases.
Gaming & Entertainment
When you grew up, there were board games, card games, and video game consoles like Nintendo. Kids these days have the same games, and a whole lot more. Your kids have smartphones, tablets, and computers to provide them even more entertainment. While video games have always been expensive, they have gone up in price with the expansion of online gaming and additional purchases that enhance the experience. Now that games can be played online, your kids are going to want the next new game and console to play with their friends. Of course these games and consoles are coming out faster than ever before.
Speaking of big changes, your kids have a lot of opportunities to make purchases faster and easier than ever before. Amazon, mobile apps, iTunes, and other services have simplified the process to make purchases. While this adds convenience, it is also one of the areas kids waste a lot of money. While some purchases are mistakes, most are legitimate, whether it was a good idea or not. This can be scary because your kids may not be thinking about how much money they are spending when purchases are so simple. Restricting your kids from these types of purchases or reviewing them ahead of time will go a long way to ensure they don’t waste their money.
Fast Food & More
Your kids are going to eat…a lot. Unfortunately, they won’t just eat healthy food either. They will spend a lot of money on fast food like McDonalds, coffee from Starbucks, and chips from vending machines. These purchases add up quickly and can be one of the largest hidden expenses to your kids. While your kids may not see a problem with spending money in this category, they should be aware of how much they are spending. Make a plan with your kids regarding how often they can eat out and how much they should be spending.