And Teach Them to Value the Dollar

by Vicki Salemi

In this age of designer toddler clothes and cell phones for second graders, here’s how two parents keep their spending in check, and keep the kids’ tastes down to earth.

Don’t succumb to peer pressure.  For David Mott, father of two, that means no video games in his home. “If other parents let their kids play, that’s their problem. I also don’t prohibit my kids from playing video games when they visit friends. I just explain to my kids my reasons for not allowing video games in my house. Reading and outdoor physical activity are healthier alternatives.”

Keep it simple.  “Sunsets are free. All you have to do is look,” says Mott.  “Like Rachael Ray says, ‘You can live richly without being rich.’ For me, this joy comes from cooking, hiking, cycling, reading. When I take my kids to Santa Cruz, I make it a point of pride to not cave into paying money at the boardwalk every time. We do hit the rides occasionally. But I teach them there is value in appreciating nature.”

Establish boundaries. If you don’t instill the value of the dollar now, it’ll be much more difficult to do later on when the treats get pricier.  Mott explains, “It’s important to set strict boundaries now to help them build limits. Free spending youths can turn into free spending adults with credit problems.”

Set an example. If you want to keep your kids grounded, it’s important to practice what you preach.  For instance, Mott is well educated and can afford to live more lavishly yet he chooses to not overspend.  “I try to be happy and grateful for what I already have in my life and that sort of rubs off on my kids,” he says.
Avoid specific stores. If you want to avoid tempting treats, simply don’t go into high-end stores, which may easily lure you to the cash register.  Shea Kelly, mother of a two year-old daughter and president/CEO of Chez Shea Baby, Inc. and DaBib, explains, “I focus almost exclusively on Target and Old Navy. Their stuff is adorable.” Sure, there’s also adorable clothing at Baby Gap and it’s OK to occasionally break down, she says,  but she makes it a habit of routinely going to the less expensive stores.

Create priorities. “If comes down to what you need to have versus what you want to have,” Kelly adds. “You can’t have everything you want.”  Plus, this instills a sense of values so when her daughter is older, she’ll be able to distinguish the two: what is absolutely essential versus what she wants.  “You learn to set a value associated with whatever those things are.”

Establish a rewards system. Rather than instantaneously giving your kid a new video game, parents like Kelly envision establishing an allowance when her daughter is a bit older. “There should be a sense of reward via an allowance,” she says.  This way, kids will get paid for doing chores around the house and may spend their hard earned money instead of spending yours.

If money were no object, do you think it’s OK to indulge or better to be frugal?