With the Holidays right around the corner, now is a good time to teach your teen some money management lessons. By encouraging them to earn their own money for Holiday shopping, you can teach them how to shop for the best bargains, how to save for big ticket items.

How to Shop for the Best Bargains

Stores everywhere are already having sales on items for the Holidays, but knowing which items are truly a bargain can be challenging at times, even for adults. One store may advertise an item as “on sale” but in reality the price is only a dollar or two off the regular price. The best way to know if you’re truly getting a bargain is by shopping around and comparing prices from one store to the next, and even online. When you receive your local store’s sales ads, have your teen open it up and begin comparing items and prices. It’s also helpful if you already have an idea of what an item sells for at regular price. Most stores will display the regular price in the ad with an X through it or in smaller, fine print under or alongside the sales price.

If you’re shopping online, your teen can also find great deals on items for family and friends. Again, teach your teen to do some comparison shopping before you buy. Also, watch out for shipping charges as they can make the actual cost of an item skyrocket, therefore defeating the purpose of saving money.

Teaching your Teen how to Stretch their Dollar

Most teenagers have a set amount to spend for their Holiday shopping for family and friends, therefore they will want the get the most they can for their money. Here are some ideas to help your teen stretch their dollar.

• Works of art such as a drawing, painting or even calligraphy can be framed inexpensively and given as gifts.
• Hand-made bracelets, necklaces and earrings are great gifts and purchasing the materials to make several can be fairly inexpensive.
• A knitted or crocheted blanket or scarf is always a hit during the cold winter months.
• Purchase ingredients for baking cookies, brownies, cakes and other goodies can make a few dollars go a long way and the recipients will love their gifts.

Money Saving Techniques

If your teen wants to buy a big ticket item for the Holidays, teaching them how to save up for it is a great way for them to learn how to save money. There are several different ways you can do this. For example, have them start a savings account at your bank of choice. Some banks require a minimum amount be left in the account, so be sure you know and teach your teen all the minor, but important details.

You can also have them save their money in a piggy bank or jar. Sometimes the visual aspect of this type of saving is needed. Your teen can actually see their money grow, which will show them how easy it is to save money and give them incentive to continue saving for other things. On the other hand, if your teen isn’t disciplined enough not to spend it beforehand, an out of sight-out of mind system will probably work best for your teen.

Teaching your teen to save money can be a fun time for both parents and teens if you go in with the right attitude and mindset. Give your teen some freedom to make some buying decisions on their own and guide them along the way. It will be a great learning experience and one step closer to independence for them.

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