Consumerism and Children

As the holidays and their rampant consumerism approach, I have noticed an increase in the "I Wants" that come out of our daughter. Specifically, it's about every other commercial on her TV shows that she wants us to buy her.

Now, I can't blame TV entirely for her consumerism. The truth is it stems form several sources. Advertising is only one.

To be honest, our daughter is an only child and is..doted on. We're not extravagant, but it is pretty normal for her to get a small treat when she goes to the store with us. So we are to blame for a lot of it.

Secondly, our daughter's closest friends in school come from pretty wealthy families. One girl she's close to in particular is the only child of a high earning, high consuming couple. Two other girls she likes have parents who buy their kids pretty much whatever they want. They're always bringing the latest trinket or gadget to school.

We don't do that, and I think she has begun to notice. She asks for a lot more things now. When I tell her we don't have money for something, she says, "Just use your credit card!"  (Eeeek! Eeeek! I can hear you all out there in blog land screaming now. Truth is, she doesn't know the difference between a debit and a credit card, she just sees me swiping a piece of plastic.)

So, since we have begun this blog we have used cash or debit only, with a much larger emphasis on cash. I will admit I still pay for some things with debit or checks.

I struggled for a while on how to teach her the basics of personal finance. On a recent business trip I bought her a small, cute, age appropriate wallet. I put two dollars in it.

I brought it home, gave it to her, and explained about her money. I also told her that when we go to stores now she needs to bring her wallet. If she wants something, it will depend on whether or not she has enough cash for it. She was delighted!

So far this seems to go well. She got a $5 bill in the mail from Grandma at Halloween. We put it in her wallet. Later that week we were at a store and she asked me for something in the checkout aisle. I told her she could buy it with her money, and she agreed. She made her very first purchase all on her own. I am not sure who was prouder, her or me!

So far, the wallet seems to be helping us teach her about money. She knows she has a savings account with money in it, but it isn't spent - she only spends what's in her wallet. Just this past week, she's been asking for less at stores, and counting her money when she does ask for things. It's a step in the right direction. It seems like the tide is turning. Additionally, since she's still learning numbers, the dollar denominations have been helping her in that area.

It seems our first attempt to thwart consumerism in our child has worked. I am curious, how do you deal with this with your children? Our daughter is still quite young, but I am interested in other ideas as she grows.

Happy football Sunday,
Iris