Thursday, July 13, 2023

How Kids Can Keep Their Holiday Budgets In Check

The holiday season is upon us! Know how to keep holiday budgets in check

There can't be a better time to spend with family on a budget and on savings. Holiday sales are projected to grow from $843.4 billion to $859 billion this year. It is 8.5-10.5% higher than last year.

That's great. Before you start your kids' holiday, let's plan each of their gift lists.

1. Bring a budget

Setting an unmistakable spending plan for these special seasons will guarantee that your children don't need to venture into the red to partake in special times of the year.

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Holiday debt averaged ₹1,381 in 2020 (reached a 6-year high). Therefore, learning to budget - and stick to it - will serve them well in the future. Tip: Start by calculating how much each item will cost and how much you want to save for the season.

2. Make a List (Double Check)

What about a gift list instead of a wish list? Lists can help your kids stay on budget.

Before your kids head to the store or open Amazon, ask them to plan ahead. A few questions for starting a convo: Who's on your gift list? do you want to buy them? How much will their gift cost - and does it fit your budget?

A list will focus on your kids, both in-store and online. And if you're shopping on Black Friday or Cyber Monday, it's important to pay attention (more on that later).

3. Set holiday savings goals

Encourage your kids to set savings goals for your Greenlight app specifically for the holidays. They may call this a "vacation fund" or a "gift goal." Here's how to set a savings goal:

Navigate to your "Savings" tab.

Tap "Add Savings Target".

Enter the title or description of what you are reserving.

Enter the target amount.

Tap "Save" to complete the set-up process.

As soon as they transfer money from their savings target to the expense department, they will send you a request for approval. See when to stop holiday shopping from their to-do list.

4. Push them along with the interest paid by the parent

Encourage smart savings by setting up parental interest on your Greenlight app. You can set and pay interest on your savings to teach your kids the magic of compound interest. Ready to install it? Start from here.

5. Will have to spend some. Give some tips

When your kids reach their holiday savings goals, talk to them about smart spending, bargains, and vacation options. Here are a few days to remember:

The shopping extravaganza following Thanksgiving: The day in the wake of Thanksgiving is viewed as one of the most active seasonal shopping days of the year. It's known for its excellent sales and discounted prices - an opportunity to teach your kids how to navigate a store or online shopping experience. Show them how to shop with specific things in mind (and avoid emotional buying). It's never too early to start researching Black Friday deals.

Small Business Saturday or Shop Small Saturday: The Saturday after Thanksgiving is all about small business. Teach your kids about supporting local businesses and small, unique bricks and mortars in your neighborhood.

Cyber Monday: The Monday after Thanksgiving is the best day of the season for online shopping - from your home. Pro Tip: This online sale usually starts on Black Friday and continues till Cyber Monday.

Charity Tuesday: The Tuesday after Thanksgiving is called Giving Tuesday, a day that celebrates all types of charity. At Greenlight, we believe that every dollar has the potential to do well. To celebrate the joy of giving, between November 22 and November 30, each charity uses an entry in its Greenlight Card = Our Giving Sweepstakes.

When it comes to balancing holiday gift shopping with return gifts, you can help raise financially healthy and happy kids.

6. Good things are rare

Gifts are often a mainstay during the holiday season, but not all gifts come from the same store. When your kids list their holiday gifts, remind them that small, thoughtful gifts are valuable.

Cookies, DIY ornaments, handicrafts, handwritten cards, and random acts of kindness can go a long way. And there's nothing better than a warm, fuzzy feeling that comes from a thoughtful gift.

7. Extend the holiday with the green light

Now it's his turn to work - with the green light on. Encourage prudent savings, smart spending, and thoughtful distribution. Sit down with your kids today to set holiday savings goals.