Revamping the Explanation of the Value of a Dollar Saved in 2024

Jay M. Greenfeld, Phd.D., C.Psych.,

One of the many ramifications of COVID that continues to gain attention is the rising cost of . . . everything. Throughout much of 2020, it was difficult for products to be produced and sold, but that challenge continues to present itself leaving families to struggle with how to balance their budgets for both needs and wants, only leading to more stress. Consequently, parents are needing to redefine how they attempt to control their spending habits and thus impart that knowledge on to their children. One of the most common stressors parents and families experience is available funds, as it is often the case that money is the hand that rocks the cradle in many households. Therefore, in this new world where going to McDonalds can be a twenty five dollar meal and buying milk can be close to eight dollars, how we budget and manage our available funds needs to be modified, as we teach our children about this very important skillset for life and decrease the stress that come with financial uncertainty.

First of all it is never too early to teach your children about appropriate spending habits and the value of a dollar. It is crucial that you help your children understand the importance of saving money to start. We live in an instant world where our children have access to anything immediately because of a significant online presence and many parents are having a harder time with choosing to limit how often they say no to the children. It is okay to tell your children that something is too expensive and that you cannot afford it. Regardless of what their friends have, to help keep the feet of your children on the ground by placing responsibility on their shoulders, help them see that items are merely replaceable, but experiences may not be. Help your children see the value of making a more intentional decision when it comes to using a gift card or spending money they may have received from their birthday. Help your children see that they can save their money and at the beginning of every season, they can use a portion of it. By doing these small intentional acts, it will help decrease that immediate need to spend what they have. Lastly, regardless of their age, help them see the value of working for their rewards. Help your children see that by doing hard work and smart work, they can earn certain rewards instead of simply giving them whatever they ask for when they ask for it. To help decrease any pressure you feel and indirectly, your children from spending money instantly, help them earn in and see the benefits of the long game versus the immediate gain.


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