According to the National Retail Federation’s annual survey conducted by Prosper Insights & Analytics, U.S. consumers plan to spend $3.2 billion on costumes, $2.6 billion on candy, $2.7 billion on decorations and $390 million on greeting cards. Do you fall in that category spending on average about $25 on candy? Maybe you spend a little more, and keep the extras for yourself...
Like many Holidays quickly following Halloween, use the financial decisions you make to set a good example for your children and/or grandchildren on how to effectively manage money. It really is never too early to start! A study by the University of Cambridge found that money habits in children are formed by the time they’re 7 years old!
Here's a simple financial lesson you can teach your kids during Halloween.
Creating a Budget
Whether your going to the store for a Halloween costume, or choosing between Nerds and Snickers, have them try to set a budget with you. Start with their goals; what are their wants and needs. They need to walk out of the store with a costume, they want to have the best looking costume on the block. What does the best costume cost? Can they afford it, or maybe they need to save a little more over time (by doing more chores!). Maybe you set the budget, and they need to get creative.
It's helpful for children to have a reminder of why they are saving, and what it takes to get to their end goal. Creating a budget - no matter how small it is - teaches the importance of making a plan. If you want your children (or grandchildren) to know how to successfully manage their money when they get older, taking the time now will be worth it!