Born to Shop

Smart spending habits to share with your child

By Gail Vaz-Oxlade

Spending money is one of the easiest things to do. Spending wisely is not quite as easy. We've all bought things that we've looked at later and thought, now why in heaven did I buy that? The cookies smelled great, but didn't taste quite so wonderful, and the extra calories weren't worth it. That new suit looked way better in the store; in the light of reality, the colour does nothing for me. That new jukebox seemed like a great idea at the time; we just don't have anywhere to put it!

When the purchases are small, it's easy to overlook the real cost. Try adding up all those quarters spent on trivial purchases and you'll soon find dollars - even hundreds of dollars - spent, with little to show.

Smart shopping takes time and involves some research. If a friend has the latest CD and you think you have to have it, too, borrow it first and have a listen. If you like it as much as you thought you would, shop around for the best price.

The same holds true for items you see advertised. First, check out how the product actually looks, feels and smells in the store. Next, think about what else you could buy for the same amount of money (a relative-value check). Finally, compare prices to see if the same products, or a very similar product, is less expensive in another store.

Patience is a difficult concept for children. However, the habit of instant gratification is one that is extremely difficult to break even after we move into adulthood. While not every purchase requires deep thought and analysis - if you want that three-dollar book and you have the money, go ahead and buy it - careful consideration should be given to buying anything that costs more than a few dollars.

Your child will take most of her cues from you when it comes to learning how to shop wisely. Remembering that the world is your classroom, you should use opportunities when you are shopping together to help your child unravel the mysteries of shopping. Here are some ideas:

• Ask your child to compare the contents and the price of one package or can of goods with another. Talk about how the shape and size of the package relate to the amount in the package. Talk about how to compare what you're getting for what you're paying.
• Let older children (10+) organize your coupons each month. When it's time to make the grocery list, involve your child and ask him to decide which coupons to use. In the store, let your child gather the coupon items for the shopping cart. Share the savings with your child.
• If your child takes lunch to school, have her plan her lunch menu for a couple of days (or for the whole week) and make a shopping list. Give her a set amount of money for each day (e.g., $2.00 for each day) and let her buy the items on her list during the next shopping expedition.
• On short-list shops, ask your child to guess how much the total bill will be. Another version of this is to give your child a calculator and have him keep a running total of your shopping bill.
• As you shop, discuss the things your child needs to consider. For example, when buying clothes, she needs to look at the fit, whether there is any room to grow, how well constructed the item is, the washing instructions, and the style (will it stand the test of time?).
• The next time your family intends to order in dinner, give your child a budget and ask him to manage the ordering of the meal using the takeout menu as a price guide. Each person should have an opportunity to choose at least one dish. Talk about ways to save, such as sharing an order or buying the special.
• The next time you're shopping for magazines, ask your child to decide whether it is less expensive to buy at the news stand or by subscription. What would happen if she subscribed but then didn't bother to read the magazine every month? Are there times when it makes more sense to buy a single copy rather than a subscription?
• The next time you're shopping for a household item, ask your child to help you select the item. Talk about the quality of the item in relation to its price. Is there a less expensive item that would do just as good a job? If you bought a less expensive item, would it last as long as the more expensive item?

Excerpted from The Money Tree Myth: A Parents' Guide To Helping Kids Unravel the Mysteries of Money by Gail Vaz-Oxlade (Stoddart).