Every parent wants the best for their child. They want to give their kids everything and pamper them as much as they can. This generally leads to the parents overspending on their kids.
It starts from the primary years of their children growing up, for example, showering your 5-year-old with a box of candies. This continues as their kids become teenagers and demand bigger things like the latest MacBook, a brand new iPhone, newly launched Nike shoes or an expensive designer dress for a party.
Parents give in to their emotions and end up buying everything their children ‘want’, but do not precisely ‘need’. This does not only spoil the kids but also takes away the value of money from them.
Here are 4 ideas to help parents not overspend on their children –
1. Prioritise their needs over wants
Every parent wants their child to be happy, which is the leading cause of overspending. However, we, as responsible adults need to understand that there are certain things that our children would like to have, and certain things that they must have. Distinguish between these two items and focus on buying what they actually need, instead of just overspending on every other item you wish to get your child. This will help you in spending within limits and ensure that your children do not take the hard-earned money for granted. Parents should also teach their kids the value of money. Most influential people make it a point to teach their kids all aspects of finances early on so that they are ready for a better future.
2. Understand your budget and financial limitations
It is common for parents to splurge during the month, and struggle towards its end. When one overspends, this is what generally happens. Understand your monthly budget and allocate money accordingly. It is nice to gift your child something every once in a while, but that does not mean splurging on unnecessary things every weekend.
Critically analyse your financial limitations to understand how much your pocket allows you to spend monthly and do not go beyond that. A good way to go on about this particular point is to discuss household finances, the limitations, and the approach behind limiting your child’s expenses. Start having honest conversations around these, and you never know, your child might just surprise you with their empathy and maturity by understanding it all!
3. Set realistic pocket money for your children
Take your time and also talk to kids while deciding on their pocket money. When you assign a particular sum of money to your children on a monthly basis, they realise the value of money. This will also enable you in becoming free from getting treats or gifts for your children all the time. Let your kids know that this is the money they will be using if they want anything other than regular necessities. The new comic book, a fashionable necklace, or some extra t-shirts – they can have whatever they want but from the money already given to them. This will also teach them how to save, as, if they want an expensive item like a new phone or a laptop, they will end up saving a few months’ pocket money to be able to purchase it finally.
4. Do not just buy things right away, set goals instead
It is usual for children to get intrigued by what their peers get from their parents. ‘But my friend’s parents gifted her an iPhone for her birthday, is a common way that children guilt their parents into buying them things. However, there is nothing to feel guilty or insecure about.
Every parent has a unique parenting style, and so do you. Try and set up goals or tasks for your kids if they demand a particular something. For example, if they want the latest smartphone, set up a study pattern for them to follow. This trick filters a lot of impulsive demands and also helps in teaching your child that not every purchase request of theirs is just a command away.
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