It’s that spooky time of the year – Halloween, but what if we told you that you could also turn this day into an opportunity to teach your children to be smart with money? In this article, we list down why it is important for your kids to be money smart, especially around Halloween.
The US is witnessing the highest inflation in over 40 decades, and unless you have generational wealth left, you must have wondered – “what if you knew how to manage your money?” Well, your kids don’t have to feel the same because you know better than your guardians. And Halloween is one of the best days for your little ones to embark on their journey to becoming financially strong.
According to American economist Jeffrey A Tucker, kids must work hard to earn their candy at Halloween since they have to create scary costumes and call on their neighbors, unlike at Christmas when they must simply be good to receive gifts. Halloween is more instructive because of this. Additionally, he pointed out that plenty of children trade their trick-or-treat sweets, which teaches them about the free market. Here are a few financial lessons about money that your children can learn this Halloween 2022.
Setting up a Halloween budget
Telling your children to eat their treats slowly isn’t just about preventing an upset stomach. This can also help your child in learning the art of spending and utilizing limited resources like money or, in this case, sweet, wisely. Certainly, there may be some objections. However, the advantages will become apparent when they see that their friends have no trick-or-treat sweets left.
Children can learn the importance of delayed gratification from this holiday. Children will learn that by waiting to eat their treats until later, they can enjoy them for a longer period of time in the long run.
Teach taxes with candy tax
Nothing is certain in life except death and taxes, as they say. On your trick-or-treating route, why not collect a “mom or dad tax” or “candy tax” on their haul to support shared resources as you dodge the Grim Reaper? Give the children a reality check on life and show them the value of money this Halloween.
Judgment on market value and barter
Successful money management is based on the concept of value. Investors, for example, determine whether to purchase shares of a company based on the company’s market capitalization or its total worth.
The cost of goods and services is determined by the intrinsic value and the benefits of ownership by consumers on a daily basis. Children are good at determining value, especially on Halloween night when they barter among themselves.
Kids can learn the importance of comparison shopping through a wonderful activity. Make sure your smartphone is up to date with apps like RedLaser and ShopSavvy. Make sure you compare the prices of the items you plan to buy this Halloween and show your kids how to do it. Compare candies’ prices on Amazon using your app. Visit a retail store with them one day. The prices of the candies, decorative items, clothes, etc., should be noted down. You can now compare the price of an item online and offline. It will give your kids a better idea of how to go about getting the best price.
Cut back on your Halloween budget. Donate an amount to a charitable organization that helps survivors lead normal lives by teaching your children about the importance of donations. Explain to your children why you are making this decision. This is an important lesson about money. Your children will learn the value of charitable donations and sacrifice at a young age.
The National Endowment for Financial Education found that students who take personal finance courses at a young age are more likely to use lower-cost loans and grants to pay for college. They are less likely to use private loans or high-interest credit cards, according to Christiana Stoddard and Carly Urban. In addition, when students are aware of the financial resources available, they are even more likely to enroll in college. And Halloween is a great event to make a concoction of financial literacy and creativity for your kids.