How to Teach Your Child the Difference Between Wants and Needs

As parents, we all want our children to be happy. We want our children to have the coveted toy or next fun experience. But there are always times when your child wants something that doesn’t fit the family budget. Expensive new video games, expensive summer camps, or trendy clothing aren’t always possible.But that’s your chance Talk to your child about the realities of moneywhich also includes that we distinguish something I want vs something we requirement.

As much as they want a new toy, game, or trip to the amusement park, how money should be in the first place Paying for basic needs such as food, housing and clothing are important steps children can take towards financial literacy.

how to talk to kids about money

When it came to talking about the affordability of some of their desires, he said, “It’s important to be candid, but it’s also important to be confident and comfortable.” Eric Storch, Professor of Psychology at Baylor College of Medicine. He suggests leading with empathy and acknowledging their desires while finding age-appropriate ways to help them understand why they aren’t getting what they want.

“Your reactions can change as a function of age and maturity,” Storch said. It is recommended. For older children, she recommends a more detailed discussion that takes into account the family’s budget.

To help children begin to understand the value of money, Storch suggests using prompts that help make concepts concrete, such as tokens, buttons, or beans. This helps us better visualize what the relative costs will be, along with the fact that it may not be enough to get what you want.

what is he won’t The recommendation is to refrain from these difficult conversations altogether. Absence of ” [these conversations] From a budget standpoint, it becomes a little harder for children to understand how the world works,” Storch said. It is an important component of being accountable.”

How to find alternatives for their “desire”

Once you’ve discussed money and helped children understand that money isn’t an infinite resource, one way to help them deal with the disappointment of not getting what they want is to brainstorm alternatives without money. Paid or free. For older children, if they want to buy an expensive item such as a video game, one option is to help them make a plan to save it. There may be extra chores family members and neighbors can do to earn some extra cash.

“Giving children everything is not always the best thing to do,” Storch said. “It’s important for children to learn how to deal with no, understand what it means, and understand that hard work is rewarded.”

Read this article for more information on how to teach your kids financial concepts in an age-appropriate way. Age-Specific Guide to Teaching Kids About Money.