Kids Can Learn Value For Money

This is the same question I posed to a group of girls aged 11 through 16 during a presentation I gave to a local group of teens this past fall. For you parents of teens out there, perhaps you already know that the majority of my group opted for the shirt from Old Navy and that your kids will likely do the same. I, on the other hand, was a bit surprised. It wasn’t just that they didn’t immediately take into consideration local taxes, shipping, duty and handling, but it was the incredible disparity between how much disposable income these kids have and their complete lack of consumer awareness that I found intriguing.

For starters, do you have any idea how much kids are spending today on clothing and cell phones? They think nothing of dropping over $1,000 whilst on a vacation to bring their wardrobe up to date, regularly cruise online retailers like Old Navy, and have no reservations about ordering clothes and other products online.

While this may give the impression that they are savvy shoppers, when asked about budgeting for major forthcoming purchases, they greatly overestimated the cost of a bike to the point that they figured there was no point saving for one because it was out of their budget. As for university tuition, housing, or long-term savings plans they had no clue of how much money they’d need to save - let alone how to start. In fact, when I tallied up the income of petty change (in this case the sum of a penny, nickel and a dime saved each day for one year) they were surprised at how much they would have after one year, let alone five if they set this money aside, even without earning interest in a bank.

Each one of them had texting and gaming capabilities on their cell phones but few paid for the charges themselves and considered ways to keep their communications charges down. And they were astonished that even if they had a receipt that they couldn’t necessarily return an item to a store just because they didn’t like it- that this was a matter of individual store policy. And when the conversation turned to product stewardship (the life cycle of a product from manufacturing through to disposal), none considered where things wind up when they’re through with them- from the hard metals that are dispersed into our atmosphere if a cell phone is incorrectly put into the trash rather than recycled, the “free” bags given out at the stores that the stores must absorb the cost of in higher prices at the checkout, or the senselessness of so many of the disposable products that we use in our day-to-day life.

It certainly makes one realize that we’re failing our children in preparing them for the future if we’re not adequately informing them of their rights and responsibilities as consumers and how to budget for the lifestyles that they see as their birthright, nor demonstrating the simple ways we can avoid endangering the environment by our consumer choices.

So, how do we change this scenario? A good idea is to start having conversations with our kids about common consumer issues. Ask them about that shirt they want at Old Navy and the charges they will be faced with in shipping it to Bermuda, and why local retailers are forced to charge more for imported goods than what they see listed online. Set up a bank account for your child right away and encourage them to set aside 10% of their earnings automatically. When you’re considering a major purchase, share with your children the research you have to do before you buy and the maintenance costs of keeping the product. Research together the cost of things that they want in the future and discuss ways that they can start saving now for them. When you are out shopping ask about the store policies on returns and warranties in front of your children. Finally, ask your kids to help you haul the trash out to the curb and have a conversation about where this trash is going and ways your family can cut back on your garbage production.

Surely, we all want our kids to have the best of everything life has to offer, but how are they going to achieve this if we don’t explain what the “best” costs and how to save enough for it, and whether the “best” will ruin their chances of enjoying a healthy environment when they grow up?