‘Tis the season for shopping and many of those purchases are put on credit cards. Why not use that purchase power to receive some perks? I have a credit card that gives me back 1% of my purchases. I took a quick and painless (I promise!) quiz on ratesupermarket.cathat told me I should have another card. Avion. The rewards calculator picks out the best credit card on the market for you, based on the rewards you want (gas, cash back, travel or special rewards) and your current spending habits. When you have the right card with the right rewards, your holiday generosity comes back to you!
Five tips for teaching your kids about money
1. Start early.
It’s never too early to talk to your children about financial responsibility. Start as soon as they’re able to count and make money the topic of regular family discussions. Enjoy a fun family night with Monopoly or The Game of Life to teach the importance of making smart money decisions.
Monopoly can help children learn the importance of budgeting and setting aside an emergency fund. The Game of Life demonstrates how focusing on education can increase earning potential.
A cash register and toy store can teach them that buying goods/presents comes at a cost.
These lessons are especially important during the holiday season where they are due to receive cash gifts or gift cards – you can educate them on the importance of spending wisely.
2. Want VS. need.
We’ve all heard kids proclaim they NEED a toy or new gaming console. Don’t give them everything they ask for and don’t feel guilty about it. It’s important that children understand the difference between needs and wants, and that they may have to wait to buy something they desire. This will help encourage them to make sensible spending decisions.
3. Teach your child to save regularly and plan purchases.
Set up a process for saving money, whether in a piggy bank for young children or a bank account if they’re older. Regularly monitor to see how much they have saved and introduce goals for saving and planning larger purchases. You can find out which bank account on the market is best for your child’s needs here.
4. Money means choice.
Money is a finite resource, and therefore it is crucial for children to learn how to make wise choices about spending. If your kids are young, during story time read them a book that teaches the basics of budgeting and saving. Remember to chat through lessons-learned at the end.
If you have a young adult, test out the Rewards Calculator on RateSupermarket.ca. It’s a quick, four-step tool that identifies which available credit card provides the best rewards for your needs (cash back, travel, gas or specialty rewards) based on your current, everyday spending habits.
5. Lead by example.
As a parent, you have a great deal of influence on your little ones, especially when it comes to financial habits. Children have a tendency to copy their parents’ behaviour, so be open about our spending habits and savings goals, and try to limit the amount of shopping trips you take as a leisure activity. They might start to think money is unlimited and spending is fun.
To help you teach your little one about spending, saving and personal finance, RateSupermarket.ca is excited to offer a fun-filled prize pack with educational games & books valued at $75. The package will arrive to you in January, just as the holiday bills begin to roll in. The perfect time to start your child’s spending education!