First Bank Account
Recently the Twofer open up their own bank accounts. After saving up allowance for a year, one had more than the other to deposit. One is a bigger shopper for sure. I'll let you guess which one.
We had to explain to her that while we often let them use their own money to make purchases, they ultimately decide on the purchase and so if your purchase cost more, you will have less money in the bank.
That's how it works kids.
We briefly discussed making purchasing decisions in the future but you know how hard it is for kids to grasp the concept of saving for the future. Heck, it's difficult for many adults!
Enter the holidays and gift card season. Yay!
I recently took the girls out shopping to use their gift cards and it became a lesson in shopping priorities.
Sure, that sparkly notebook with a big glittery "E" on it is pretty - but don't you already have a BAJILLION other notebooks, and an a GAZILLION other glittery things??
Now this blouse (I hold it up), is not only pretty, it's practical because you can USE it, you don't have one like it yet (and frankly it will save me a little when it's time for spring shopping).
Yes, the blouse costs more, but you are getting one, quality product that you will use over and over again... as opposed to tons of plastic crap that will fill up my house and break in a month only to end up in the trash.
ONLINE Shopping Priorities and Virtual Piggy
So, it's one thing to head to a store with a set amount of money (either in cash or on a gift card) and shop. We can hold up the merchandise, feel the quality, try it on, and pause to make the decision if we REALLY want or need the item.
Shopping online is a whole different story, and yet our kids are of the generation that is going to do the majority of their shopping online. This online, virtual shopping can be dangerous. Example: I have the Starbucks app that let's you pay with your phone and add $25 to your 'card' right from PayPal. "I didn't feel that $25 at all," I exclaimed the first time I did it.
Luckily there are sites like Virtual Piggy that offer a great way for parents to help their kids through budgeting, saving and making smart online purchasing decisions.
With Virtual Piggy you set up a parent account and a separate child profile where you set allowance, saving goals, and spending controls. There are budgeting tools and kids can make a wishlist then shop their favorite retailers right online at shop.virtualpiggy.coml! It's the perfect tool to keep discussions flowing between parents and kids about making smart shopping choices.
Virtual Piggy offers tons of parental controls that you can loosen up as your kids mature and as you see they are making responsible financial decisions. For example you have the option to require approval on every single purchase, or just some, and you can set a maximum level per transaction, per day, per week, or restrict them to only shopping at certain merchants.
How do you talk about money with your kids?
Do you help guide them in their shopping choices? Have you let them make mistakes and learn from them? I'd love to know!
Disclosure: This is a sponsored post from Splash Creative Media on behalf of Virtual Piggy. All opinions are my own and this post was not reviewed nor approved prior to posting.