Tosha Larios Teaching Kids Smart Spending with Advanced Girl Math: Birthdays and Holidays Edition

Birthdays and holidays are exciting times for children, filled with anticipation, joy, and often, a lot of new toys and gifts. But these occasions also present valuable opportunities to teach children about smart spending and financial responsibility. As a creator of Advanced Girl Math, I’m passionate about empowering everyone, including children, to make informed decisions about their money. By incorporating fun and engaging lessons into these special times, you can help your kids develop a strong foundation for financial literacy that will benefit them for a lifetime.

1. Start with a Conversation

The first step in teaching children about smart spending is to have an open and honest conversation about money. Explain that money is a tool that helps us buy the things we need and want, but it’s also something we need to manage carefully. Use age-appropriate language and examples to discuss concepts like saving, spending, and budgeting.

Example: Before a birthday or holiday, sit down with your child and talk about how they might want to use any money they receive. Explain the importance of making a plan for their spending, saving some of it, and perhaps even setting aside a portion for giving to others.

2. Create a Simple Budget

Creating a budget with your child can be a fun and educational activity. Start by helping them list out what they might want to spend their money on—whether it’s gifts, toys, or activities. Then, work together to allocate the money they have or expect to receive.

Example: If your child has $50 to spend, help them divide it into categories like $20 for a special toy, $10 for a small gift for a friend, $10 for savings, and $10 for a charitable donation. This not only teaches them about budgeting but also encourages thoughtful decision-making.

3. Introduce the Concept of Saving

Saving is a critical component of smart spending. Teaching children to set aside a portion of their money for future use instills the value of delayed gratification and helps them understand the importance of planning for bigger purchases.

Example: Encourage your child to save a portion of their birthday or holiday money for something they really want in the future, like a bigger toy, a special outing, or even a college fund. You can make this more engaging by using a clear jar or a piggy bank, so they can see their savings grow over time.

4. Teach the Value of Giving

Holidays and birthdays are perfect times to teach children about the joy of giving. Encourage them to set aside a portion of their money or gifts for someone else—whether it’s buying a present for a friend, donating to a charity, or helping someone in need.

Example: If your child receives $50, suggest they use $10 to buy a small gift for a sibling or donate to a cause they care about. This practice not only teaches financial responsibility but also cultivates empathy and generosity.

5. Make Spending Decisions Together

Empower your child to make their own spending decisions, but guide them through the process. When they want to buy something, discuss whether it’s a need or a want, and whether it fits within their budget. This helps them develop critical thinking skills and understand the consequences of their choices.

Example: If your child wants to buy a toy that costs more than their budget allows, discuss the options with them—perhaps they can save up for it or choose something else that fits within their budget. This teaches them to prioritize and make thoughtful decisions.

6. Reflect on Spending After the Event

After the birthday or holiday has passed, take some time to reflect on the spending decisions together. Discuss what worked well, what they might do differently next time, and how they feel about their choices. This reflection helps reinforce the lessons learned and encourages continuous improvement.

Example: Ask your child how they felt about the gifts they bought or received, whether they’re happy with how they spent their money, and what they might save for in the future. This reflection can be a valuable learning experience and strengthen their financial literacy.

Making Smart Spending Fun and Engaging

Teaching children about money doesn’t have to be boring or difficult. By using the principles of Advanced Girl Math, you can make financial education fun, engaging, and relevant to their lives. Whether it’s through budgeting for a birthday, saving for a special holiday gift, or learning the joy of giving, these small lessons can have a big impact on their future financial success.

Remember, the goal isn’t to make your child a financial expert overnight but to gradually build their understanding and confidence in managing money. By starting these conversations early and making them a part of your family’s routine, you’re setting your child up for a lifetime of smart financial decisions.