Halloween is a favorite celebration for most kids. Why?
CANDY, that's why!
Halloween can also be the perfect opportunity to teach your kids some valuable life lessons about money management.
These money areas can include:
- Saving
- Charity
- Taxes
- Market Value
As they celebrate the season with candy and costumes, financial experts say parents should engage their little monsters in age-appropriate dialogue that can help pave the way for responsible saving and spending habits down the road.
Save for a rainy day
Counseling your kids to consume their candy slowly doesn't just prevent a tummy ache. It also gives them a chance to hone their budgeting skills.
It's a tough sell at first, but the benefits quickly become evident when they still have half their haul in mid-November, and their friends (or siblings) have nothing left but empty wrappers.
Charitable giving
Kids may not have deep pockets to support their favorite charity, but as Halloween rolls around, don't forget that candy is a commodity that can be shared.
Homeless shelters also generally welcome donations of unopened candy, as do senior centers that care for housebound elders.
The tax man
There's nothing certain, as they say, but death and taxes. As you dodge the creepy clown on your trick-or-treating route, why not take the opportunity to collect a "mom or dad tax" on their earnings (candy) to help support the cost of shared resources.
Be prepared for pushback.
Market value
The concept of value is central to successful money management. For example, investors determine whether to purchase shares of a company based upon, among other factors, its total worth, or its market capitalization.
Similarly, consumers decide daily whether the costs of goods and services are reasonably priced based on their intrinsic value and the benefits of ownership.
Determining value comes naturally to kids, especially on Halloween night when they engage in bartering among their friends and siblings.
As each child sorts through their candy haul, they quickly realize that not all candies are valued equally.