Turn your vacation into a learning adventure by teaching your kids some valuable money lessons.
You may not be aware of it but going on a summer vacation can be a great way to teach your kids some lessons about managing money. Yes, you can have lots of fun with your family, explore exciting new places, discover new things and teach your kids some valuable money lessons all at the same time! How do you do it? Here are some simple yet effective tips to accomplish this goal.
Valuable Money Lessons that You Can Teach Your Kids While On a Vacation
Let your kids be a part of the decision planning process. Talk to your kids about how you can all save enough money for the trip. Ask them if they have any suggestions on how to make this possible and let them understand why you need to limit your expenses during the last few months before the trip.
Teach them to save for a goal. Teach your kids to put any extra money in a designated family coin or bill jar so that they can actually see how the money accumulates. Tally the money before you leave for the trip and let them decide where to use it. By doing this, your kids will understand that saving money has its own rewards.
Give them a budget. Allocate a certain budget for your tweens or teens and let them decide how they would use the money. For sure, this will teach them the relative value of different items and help them make better cost-effective choices.
Let them use a pre-paid credit or debit card. Let your kids understand that credit cards cannot be used to buy anything they want. Give your older children their own pre-paid debit cards, put a set amount of money on the card and let them know that you won't put any additional funds on it. This will help them practice discretion and teach them to make better choices when using their cards.
Teach them how to spot a real deal. When visiting a foreign country, be sure to teach your kids how to calculate the exchange rate to see how much they are really spending. You may also need to teach them how to shop around to find the best deals in town.
Teach them the importance of financial safety. Remind your kids to watch out for their backpacks and purses. Tell them that you won't replace their money if they lose it or bail them out if they run out of cash before the day ends. You may likewise choose to reward them by doubling their money if they don't blow their allowance for the day.
Follow these tips and you can surely spend some quality time with your family, teach your kids some valuable money lessons and save money during your vacation.