Use party planning to help your child learn financial literacy concepts
Children are only as precious as we make them, and when it comes to planning a fun, budget-friendly birthday party, it’s important to talk to your child about their expectations, while maintaining your own expectations as well, of course. Every family is unique, and while one friend may have thrown a party at an expensive location, another may have planned a gathering at home. This is a great opportunity to teach your child in age-appropriate ways how to make choices with financial considerations in mind.
According to a recent report, 40% of parents prefer to hold their child’s birthday party at a restaurant or somewhere. While we all want to throw the best party possible for our kids, it still needs to fit within the family budget.
For example, taking your group of partygoers to the movies, arcade, or out to dinner might seem like the perfect fun and exciting birthday party without the chaos in the house. However, once you start factoring in the price of food, snacks, venue, and other incidentals, like gift bags, the costs can skyrocket.
Instead of overspending or going into debt for a party, discuss with your child how they would like to celebrate their birthday. Maybe they’d rather invite just their best friends to the gym and dinner, rather than the entire soccer team. Or maybe they want to invite their whole class to the pool after school, and enjoy chips and cookies poolside after swim time. Planning a party between meals can save costs without sacrificing fun. Ask your child whether gift bags are necessary, or whether a handful of candy or an extra toy would suffice. If they’re indifferent, skip the bags or give each child a small gift card for a snack at McDonald’s or a treat at Starbucks. This puts money toward buying something they will hopefully use, rather than a bag full of trinkets they can’t really use. Another option is to take home pizza, snacks and cake, with a variety of video games, movies and music for guests to enjoy. By balancing budget-friendly options with more expensive options and incorporating your child’s ideas, you can find a reasonable price point for a party your child will love.
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Consider modifying family gift-giving traditions
Gift giving is a big part of your birthday. If you’re lucky enough to have grandparents, aunts, uncles, and other extended family members involved in your children’s lives, consider modifying your family’s gift-giving traditions. For example, the next time a family member asks you in good faith what your child might want for his or her birthday, suggest smaller gifts or gifts with a longer-term impact.
For example, contributions to tuition plans or help pay for sports or music lessons can be more practical and beneficial to both the gift giver’s and parents’ budgets. these Alternative gifts Not only does it allow for meaningful involvement of extended family in your children’s lives, but it also helps your children learn valuable lessons about finances and gift-giving.
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