(BPT) - While it's the most wonderful time of the year, holidays often come with a hefty price tag. Many find themselves preparing for an increase in spending during the holiday season, whether they're creating a budget or setting aside funds throughout the year.
Managing finances during this time of year presents an opportunity to educate kids on the importance of understanding 'wants' versus 'needs' and how to manage their spending. By involving them in the budgeting and planning process, you can equip them with tools that can help pave the way for future financial success.
To help you get started, Chase rounded up their top tips for teaching your kids money lessons during the holidays.
1. Create a holiday budget
By the time you have a teenager, they likely have a list of people in their life they want to purchase gifts for. But even the smallest presents can add up, leaving little extra cash for fun activities with friends. Encourage your child to sit down and make a list of people they want to buy for, then set a spending limit for each person.
2. Monitor where their money goes
Another way to track spending is to set up a checking account with a debit card just for kids. Bank accounts like Chase First Banking, which is parent-owned and available for kids 6-18, offer parents and kids a shared journey toward financial understanding. Kids best learn money basics firsthand, and accounts like Chase First Banking allow parents to monitor their kid's spending, set limits, track progress, receive alerts and more, all through the Chase Mobile app®.
While your kids may have a long list of gift requests this year, encourage them to break up their list into wants and needs, and really think about what they're asking for. Is it something they can use for a long time? Is it something that will bring them closer to achieving a goal? Try to curb the idea that 'more is better.' You can also take some time to research and compare prices, teaching them how to get the most bang for their buck.
3. Gift good money habits
Whether it be what or where they're spending, their gifting budget, how much they're earning or their savings goal, the holidays are full of opportunities to discuss good money habits. Opening a bank account is a great way to lay the financial groundwork by promoting saving and tracking their spending.
For your older ones, accounts like Chase High School CheckingSM is co-owned by the parent and designed for kids 13-17, and Chase College CheckingSM, for students 17-24, are great tools for your child to get a clearer picture of their financial life. They can track their finances with the Chase Mobile app, learn to save with automatic transfers to their Chase savings using Autosave, and handle splitting a gift or paying back family and friends with Zelle®.
4. Save what you don't spend
Setting up a bank account can also help your kids learn the importance of saving for the future. While this season can be all about spending, it's important to make sure you talk about saving. Autosave automates your savings by allowing you to choose when and how often you want to transfer money from your Chase checking account to your Chase savings. Even if your child is spending a little more during the holidays, make sure they still fit some savings into their budget.
While the holidays can be hectic, it's one of the most opportune times to educate kids on crucial financial lessons. Using these four tips, you can help your child experience all the holiday magic without them breaking the bank. For more information and tips for setting up your child for financial success, visit chase.com/studentbanking.
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