In light of today’s economic troubles, it’s imperative that kids are taught how to properly manage money. It’s a lesson many of us don’t receive until we are thousands of dollars in debt. Following are some creative ways to use discount gift cards to teach kids about money.
Discount Gift Cards Teach Kids to Budget
You can use discount gift cards to teach children how to budget. For example, if they receive an allowance, give it to them on a gift card. Then have them break their “expenses” down into categories, eg, birthday presents for friends, weekend social activities and money for school supplies.
In this case, you can dispense their allowance on separate gift cards, eg:
For birthday presents, give them a Walmart or Children’s place gift card. For weekend social activities, you can give them a Burger King gift card, or a Jack in the Box gift card. For school supplies, a Staples gift card would be ideal.
The lesson here: Give your money a purpose, for money that has no purpose will find a way to leave you.
Discount Gift Cards Teach Kids the Monetary Cycle
One of the best reasons to use discount gift cards to teach kids about money is that you can buy, sell or trade them. So if, for example, your child has money left on a card, you can show them how to turn money that’s sitting around earning no interest into cash by selling it.
Once the gift card is sold, they can then take those funds and put it in an interest-bearing savings account.
The lesson here: Your children will get to see both parts of the monetary cycle, ie, spending it and saving it.
Why Discount Gift Cards are an Ideal Way to Teach Kids about Money
When you go shopping with your children, they probably see you use plastic – not money. Even if you shop with cash, eg, a debit card, kids see “a card; the plastic.” They don’t see actual dollar bills. Is it any wonder that so many of them don’t realize the value of a real dollar?
Discount gift cards are a cash money tool. If you get your children in the habit of seeing and using plastic – but using it in a responsible manner – they’ll be much more likely to avoid the debt trap that so many fall into as they get older.