The holidays are filled with joy, generosity, and plenty of “I want that!” moments. It’s the perfect time to teach kids an important money lesson: the difference between needs and wants.
Start with something simple. When your child asks for a new toy, compare it to something essential, like food, clothes, or a warm place to live. Explain that needs are things we must have to live and stay safe, while wants are the extras that make life more fun. The key is not to discourage them, but to help them make thoughtful choices.
Here are a few hands-on ways to teach this concept:
1. Make a wish list together.
Have your child write down everything they want this holiday season. Then, help them label each item as a need or a want. You’ll be surprised by the conversations that follow!
2. Create a giving goal.
Encourage kids to set aside part of their allowance or holiday money to help others. This shows that money can be used for more than spending—it can make a positive difference.
3. Open a Youth Savings Account.
With a Palmetto First Youth Account, your child can watch their savings grow while learning to set priorities. They’ll discover that saving for the things they want often feels better than instant gratification.
4. Talk about family finances.
Share how your family budgets for gifts, groceries, and special treats. Real examples help kids understand that even adults make choices between needs and wants.
By keeping these lessons simple and consistent, you’ll help your child build healthy money habits that last long after the holiday season.
Start their financial journey today with a Palmetto First Youth Account, where learning to save is just the beginning.
