Use Party Planning to Help Your Child Learn Financial Literacy Concepts
Kids are only as expensive as we make them, and when it comes to planning a fun and budget-friendly birthday party, it’s important to talk to your child about their expectations, while of course, keeping your own expectations in check, too. Each family is unique, and while one friend might have had a party at an expensive venue, another might have planned a gathering at home. This is a great chance to teach your child in age-appropriate ways about making choices with financial considerations in mind.
According to a recent report, 40 percent of parents prefer to have their children’s birthday party at a restaurant or venue. While we all want to provide the best party we can for our child(ren), it still needs to fit the household budget.
For instance, taking your group of party goers to the movies, arcade, and out for dinner, may sound like the ideal fun and exciting birthday party with no mess at home. However, once you start to calculate the price of food, snacks, venue, and other incidentals i.e., goody bags, the costs can skyrocket.
Instead of overspending or going into debt for a party, discuss with your child how they’d like to celebrate their birthday. Maybe they’d prefer inviting just their best friend to the arcade and dinner, rather than the whole soccer team. Or perhaps they’d like to invite their entire class to the pool after school, enjoying chips and cupcakes poolside after their swim time. Planning the party between meals can save on costs without sacrificing fun. Ask your child if goody bags are essential, or if a handful of candy or an extra game 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 the cash towards something they’ll hopefully use, rather than a bag full of trinkets they can’t really use. Another option is to have pizza, snacks, and cake at home, with a variety of video games, movies, and music for guests to enjoy. By balancing budget-friendly options with costlier choices and incorporating your child’s ideas, you can find an affordable price point for a party your child will love.
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Think About Adjusting Family Gift-Giving Traditions
Gift-giving is a large part of having a birthday. If you’re fortunate enough to have grandparents, aunts, uncles, and other extended family involved in your children’s lives, think about adjusting your family gift-giving traditions. For example, the next time you’re asked by a well-meaning family member, what your child might want for their birthday, suggest smaller gifts or ones with a longer-term impact.
For example, contributions to RESPs or helping with payments toward sports or music lessons can be more practical and beneficial to both the gift-giver’s and the parent’s budgets. These alternative gifts not only allow for meaningful extended family involvement in your children’s lives, they also help your kids learn valuable lessons about finances and gift giving.
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