The money talk — not as scary as the birds and bees, but still a lot to think about. We get it and so do other parents. In fact, 49% of parents say they’re not sure how to explain money to their child. Enter: Spring Break. It’s the perfect time to open the conversation, starting with budgeting.
EXPLAIN WHY BUDGETING IS IMPORTANT
If you’re like 67% of Americans, you keep a budget — nice! Time to get your kids on board. But how? You could start off by explaining why a budget matters, because chances are they’ll ask.
Conversation Starter: “When you make a budget, you know just what you’re spending, and how much you need to save for things you want, like those AirPods.”
EXPLAIN COMMON BUDGETING TERMS
Fixed Expenses and Variable Expenses — ring a bell? Maybe, maybe not. Either way, they’re important words to teach your kids about budgeting. Break it down into Spring Break terms, and they’ll get it.
Conversation Starter: “A Fixed Expense is one that doesn’t change. Like, our plane ticket. A variable Expense is one that does change. Like, meals. It can go up or down, depending on where we eat.”
EXPLAIN WHY SAVING MONEY IS IMPORTANT
Budgeting for Spring Break is one thing — saving for it is another. Instead of simply handing them money (and hoping they stash it away), show them the importance of earning and saving.
Conversation Starter: “Saving money lets you buy things that you might not have enough money for right now. When you add a little bit of money to savings over time, it helps make future purchases possible.” Tip: Name something you’re saving for, and how you plan on reaching your goal.
GIVE THEM THE GREENLIGHT
After you have the money talk with your kids (you’ve got this!), think about getting them a debit card — like Greenlight. Unlike a credit card, they can only spend what’s on it. (More on the differences between credit and debit here.) The best part: debit cards like Greenlight empower your kids to make smart money decisions, long after Spring Break ends.
With the Greenlight debit card and app, your kids can:
- Set Savings Goals. Even staycations cost money. Teach them to save for it.
- Learn to Make Trade-offs. Keychain or shark-tooth necklace? It’s their call.
- Earn Allowance Through Chores. Greenlight kids who earn allowance save 26% more.
As they start learning about money management, you’ll be right there with them. The Greenlight app lets you:
- Control Access to ATM’s. Are they taking too much out? Set limits.
- Choose Stores. You decide where they can and can’t spend.
- Get Real-Time Notifications and Monitor Their Spend Levels. Perfect if they’re vacationing without you.
GET SET FOR SPRING BREAK
Join Greenlight today and help your kids get a head start on budgeting for the break — and for life! Sign Up Now