Save Some Money: Say No To Your Kids – A Child Psychotherapist’s Perspective

Having children will be one of your life’s biggest and best events. When you hold your newborn in your arms, you’ll want to give your child everything under the sun. The costs can be endless from the most expensive childcare to the highest quality organic baby food and a $1,000 stroller. Unfortunately, it doesn’t get better as your baby turns into a child and teen. Soon, you’ll think about private school, a costly sport, and summer camp. Did you know parents can pay $5,000-$10,000 for their 10-year-old to play ice hockey for one year? Or $7,000 for a teenager to go on a month-long summer teen tour group? One session with a reading tutor can cost $75 for less than an hour! The costs are endless with kids, and you’ll want to give your kid everything as a new parent. Here we will go into how to say no to your kids.

Saying “no” to your kids when they ask for something they want can be challenging, but it’s an important part of teaching them about money management and setting limits. Here are some tips to help you say “no” when buying things for your kids:

1. Set Clear Expectations: Set clear expectations with your kids about what they can expect in terms of buying things. Explain that you have a budget to stick to and that there are limits to what you can buy.
2. Be Firm: When you say “no,” be firm and stick to your decision. Avoid giving in to your child’s requests or trying to negotiate.
3. Offer Alternatives: If your child asks for something that you can’t buy, offer alternative options that fit within your budget. For example, if they want a new video game, suggest borrowing it from a friend or renting it from a video store.
4. Explain Your Reasoning: Explain your reasoning for saying “no” to your child. For example, you might say that you are saving money for a family vacation or that you need to pay for bills.
5. Teach Money Management: Use the opportunity to teach your child about money management. Explain the importance of setting financial priorities, creating a budget, and saving money.
6. Encourage Them to Earn Their Own Money: Encourage your child to earn their own money through chores, babysitting, or other age-appropriate jobs. This will help them learn the value of money and the effort required to earn it.

Remember, saying “no” to your child is not easy, but it’s an important part of teaching them about money management and setting limits. By setting clear expectations, being firm, offering alternatives, explaining your reasoning, teaching money management, and encouraging them to earn their own money, you can help your child develop healthy financial habits that will serve them well throughout their lives.

Spend Money On Your Children

The children who get the best and most of everything are not better off. They are no happier or psychologically healthy than kids who have everything. There are many reasons why your child shouldn’t receive all of these luxuries. I use Personal Capital to help track and manage to spend on my kids.

Prioritize Your Spending

As a parent, it is okay to prioritize your children and family. What do you think is best for your family? Would you like them to have a premier education in a private school? Or go to public school and spend the extra money traveling and experiencing other parts of the world? Feel confident, not guilty about needing to make these difficult choices, and explain your thinking to your child. By doing this, you are modeling how you make decisions and teaching your child an essential life-long skill. A great book I advise most parents to read is The Opposite of Spoiled: Raising Kids Who Are Grounded, Generous, and Smart About Money. It’s a long title but a great book!

Teach Your Kids To Prioritize

Please help your child learn to prioritize and practice making decisions for him or herself. For example, when your child is a toddler, you can ask them to choose between taking a dance class or gymnastics. Choose between buying a ball or a toy car. You are teaching your child you cannot have everything at once. These early lessons will help your children be more prepared later when he or they need to prioritize what schoolwork to start first. Or an adult who needs to prioritize spending limited free time with family over friends. Kids who are given everything do not have the chance to prepare for life’s challenges and disappointments.

Say No And Set Boundaries

Your child is better off when they start hearing the word NO early. Although they resist, kids thrive on boundaries. A child with few or no consistent boundaries feels and acts out of control because they do not know what is allowed. Kids cannot create limits for themselves, so parents need to take on this role. Saying no prepares your kids for the real world. Your child will not make every sports team or get a job offer for every job applied to. Therefore you’ll be doing your child and your wallet a favor when you say no to extra spending.

Explain Where Money Comes From

Eventually, your child will hear the phrase from the book “money doesn’t grow on trees.” You’ll probably say this when you’re fed up with your child’s expensive requests. But you may not explain the meaning behind this phrase. Teaching your child that someone needs to work for the family’s money is okay. You can also begin discussing basics about finances and budgeting. Your child will be better off if you introduce these topics earlier rather than later. Most children will be ready to understand some of these concepts around age ten.

Don’t Create Anxiety About Money

However, I will caution that introducing a young child to “money troubles” could create an unhealthy amount of concern or anxiety about money which could last a lifetime. To avoid this, do not present financial issues and responsibilities as a burden to your family. Instead, neutrally present the facts. For example, you could say: “Adults need to work to earn money. Save money for necessities such as housing, food, insurance, and health care. The other money can be spent on fun activities, vacations, and dining out. Managing money is a part of being a responsible adult”.

Give Your Children A Financial Education

An allowance is a common way to educate your child on finances. Use a printable chore chart to help visually track the household chores they’re responsible for. Set expectations on how much will be given in return and what the money should be used for. Then let your child make some of their own decisions. This is one of the best ways to teach your kids because he or they will learn from their successes and mistakes. It is also an excellent opportunity to teach your children how to make money.

It Is Hard To Say No To Your Child

Parents, myself included, often find it difficult to say no to their kids. Especially if it’s for something legitimate such as trying a new sports class or buying books when you visit the bookstore, you and your child might feel discomfort when saying no. But my advice is to think beyond the moment you’re in and recognize that privileged children can face their own set of growing pains. In the long run, you’ll keep child-related expenses in check while providing your child with the life-long lessons needed to be a responsible adult.

In private practice, parents read The Price of Privilege.

Regardless of how much money a person has, it can be difficult for them to manage it properly. It can be even more challenging for parents to teach their children to balance how they view and use money. However, this is necessary for them to learn so they can grow up to be happy and capable of managing their finances.

Here are three tips to help teach your children not to take money for granted and to spend it responsibly.

Teach your kids to make more minor financial decisions

You can start when your kids are relatively young and take them to a store to spend a small amount, perhaps $1 or $5. If your children are at the age where they can’t distinguish different prices on items, you may want to take them to a store with a dollar or two-dollar section so that all of their options cost the same.

You can let them know they can pick out one thing to buy with their money. You may need patience the first few times you do this with them, as they will undoubtedly want several things. If they have difficulty choosing, you can give them a time limit to make their decision. It would be best if you reminded them to pick something they want, so they’ll be happy with their choice. Finally, you can talk to them about how you have little money to spend when shopping, so you have to make good decisions about what you buy.

As your kids get older, you can take them to different stores and help them compare similar items’ prices, so they gain insight into how to shop wisely. Additionally, when making decisions about an item, you may purchase, talk with your kids about the things you consider before buying it. Ask for their thoughts, encouraging them to think before making purchases themselves.

Teaching your kids how to make minor financial decisions is an important part of their financial education. Here are some tips to help you teach your kids how to make more minor financial decisions:

1. Start with the Basics: Teach your kids the basics of money management, such as budgeting, saving, and spending wisely. Start with simple concepts, such as the difference between needs and wants, and the importance of saving for a rainy day.
2. Give Them an Allowance: Consider giving your kids an allowance and encourage them to manage their money independently. This will help them learn how to make choices about how to spend their money, and the consequences of their decisions.
3. Involve Them in Household Budgeting: Involve your kids in household budgeting discussions, such as planning for family vacations or deciding how much to spend on groceries. This will help them understand how to make decisions based on financial priorities.
4. Teach Them to Compare Prices: Teach your kids how to compare prices and shop for bargains. This will help them develop the skills to make informed decisions about spending.
5. Encourage Them to Save for a Goal: Encourage your kids to save for a goal, such as a new toy or a special event. This will teach them the value of delayed gratification and how to set and achieve financial goals.
6. Lead by Example: Finally, lead by example. Show your kids how you make financial decisions, such as comparing prices or saving for a goal. This will help them learn from your behavior and develop healthy financial habits.

Remember, financial education is a lifelong process, and teaching your kids how to make minor financial decisions is just one part of it. By starting early and providing ongoing guidance and support, you can help your kids develop the skills and habits they need to make smart financial decisions throughout their lives.

Teach your kids to balance quality and prices

Help your children appreciate not just brand names- and the popularity that goes along with them but also the quality behind the brand. It would be best if you taught them to compare the quality of high-priced items with those that are lower-priced but may not be as well-known. You can encourage them to save money in cases where high-priced items do not offer better quality for the cost. Help them see that they should get their money’s worth for each purchase and that the fewer things cost, the more they will have to spend. On the other hand, ensure they know not to settle for something of a lower price if the quality is poor.

Use good judgment when you buy things for your kids.

Even if you can afford to get your kids most of the things they want, this doesn’t mean it’s always a good idea. You can teach your children to save up a portion of what they earn for specific things they want, so they can practice buying something they’ve saved up for. Some of the items you buy can be used as a reward for good behavior. Try sometimes to purchase items that aren’t electronic but that they’ll still enjoy using- books, toys, games, puzzles, etc.

Teaching your children to be balanced with money takes effort, but you can succeed. Then, when they grow up and know how to make sound financial decisions, you’ll be glad you showed them how to do so. For more tips on family and money, check out our other articles, and feel free to contact us with any questions.