Happy New Year everyone! Wish you all had a fantastic holiday season and that you're now ready for the new year! January can be a very tricky month though: it's cold, there are no public holidays after New Year's Day and you need to pay for what you spent during the holidays!
Did you buy a 55" 4K Ultra HD LED Smart TV for $899 on Boxing Day? It was $400 off the regular price! What a great deal...right?
Did you book a last minute, all-inclusive, multi-city Caribbean vacation? It included a 3-day cruise! Of course you had to book it...right?
Did you try out several fine-dining restaurants and watched symphonies, plays and shows? That's what the holiday season is about...right?
The simple response to these questions is this: If you had planned and budgeted your spending strategically, then that's great. But if you had done everything impulsively and now you're having a difficult time paying your bills, then that's not great! This is especially true if you have kids who are smart enough to know if you are financially literate or not.
Here is a fun exercise that you can do with your kids in order for them to become more financially responsible:
Create three jars – each labeled “Saving”, “Spending”, or “Sharing.” Every time your child receives money, divide it among the jars. Money in the saving jar is to be put aside for a large purchase, such as a bike. Money in the spending jar can be used for small purchases, such as candy. Money in the sharing jar can be donated to a good cause, such as a charity. The purpose of this activity is for kids to identify how they want to allocate their money instead of spending everything that they have right away. Hopefully they will learn to be responsible with their money!
Now if you'll excuse me, I need to plan and budget our 2017 Christmas vacation!