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Kids's Corner

Holiday Budgeting: What Kids Need to Know
This is a great time of year to teach kids about spending and budgeting. In fact, it can be one of the best because it is a short time frame with very specific goals. And, it also helps kids learn that spending and budgeting during the holidays is important– just as it is throughout the year.

One of the best ways for kids to learn is by watching others and seeing examples. Parents can set one of the best examples for kids at any age. This is true even if you don’t usually have a holiday budget or holiday spending plan. You can learn together...so let’s get started!
Show them how to make a written plan – a list of what needs to be purchased and how much you think it will cost. The best way to do this is to make your holiday spending list as a family. Involve everyone in the process – it will seem a lot less like a classroom lecture. You don’t need to give away any secrets here – keep it to the list of things that they know about. The list should include:

  • Names of family members and friends who will receive gifts. If it can include the specific gift, that’s even better.
  • Activities such as traveling to Grandma’s house or attending the neighborhood open house.
  • Christmas tree and decorations. This is especially true if you buy a real tree each year.
  • Any special charitable donations made during the holiday season. This could be contributing a new toy to Toys for Tots, adopting a family in need or contributing to a local food bank.
  • Once you have the list, you need to add the cost of each item. This is a very important part of letting kids know that even the holidays come with a price tag. All lines get an amount equal to what you are willing to spend.

Putting a holiday spending limit on each person at the start will help down the road. This will ensure that you don’t fall into the trap of figuring out the perfect present for cousin Pearl only to find out that it is double what you wanted to spend.

Add up all the lines to come to the total. How does it compare with your original holiday budgeting total and the overall family budget?

Challenge yourself and the kids to think of ways to cut 10% (or your own number) out of the holiday spending list without changing who will receive presents or what you are doing over the holidays. Make it a game by looking at the Sunday paper or online for the best deals. This is also a great introduction to shopping for all other times of the year.

The earlier you can start this plan, the easier holiday budgeting will be for the whole family. It provides opportunities to teach kids as you shop. It helps them see – in a very short period of time – how important it is to manage money to be able to buy items that are needed or wanted. And that is an example that makes sense all year-round.


Teach Your Children Financial Independence
That’s the average report card 12th graders earned for financial literacy. What our youth don’t know is shocking. For example, only 27% understand that interest/dividends on savings accounts may be taxable. Only 40% realize they could lose their health insurance if their parents become unemployed.*

Achieving economic prosperity is difficult. It’s especially hard for young people who’ve never learned how to manage money. Your credit union is ideally positioned to respond because we believe in the power of education. We’re here to help you launch the youth in your life toward financial independence.

JOIN - As a start, open a savings account for each child in your family at the Credit Union. As soon as your children can write, they should learn how to fill out deposit and withdrawal slips. Guide teenagers through using a debit card and balancing a checkbook.

SHARE - Include your children in your household finance discussions. Show them how you budget income and expenses. As their skills improve, give them challenges—such as finding a better cell-phone plan, calculating the total monthly cost of owning a car, or sticking to a budget with back-to-school or holiday spending.

COACH - Remind your children to ask for help when they need it. And turn to the Credit Union when you want help. Our tradition of service and philosophy of self-help make United Poles FCU a natural partner in pursuing financial security.


Holiday Budgeting:
What Kids Need To Know
Teach Your Children Financial Independence
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