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Children are a great target market, that’s why most businesses’ marketing efforts are geared towards them. This is most especially true this coming Christmas season, as children are expecting to receive gifts in this time. Absorbing the impact of these marketing ploy are the parents, who oftentimes give in to their children’s nagging for various reasons – to stop their whining, as a reward for their kids, or just simply they can afford it.

How many times have you heard your kids who came home from school saying “Mom, my classmate brought a PSP to school, it was cool! I wish I can have one too.” Or whenever they see a new cell phone model, they also one to be updated and have one. Yes, children are such an easy target market.

For parents however, it is wise to teach kids the value of money. It is never too early to teach them financially literacy. They just need to explain to them the difference of ‘wants’ and ‘needs’. The ‘wants’ being those that they really can’t live without like clothes, food, education and transportation. Those in the ‘needs’ would include anything aside from the ‘wants’ that they really don’t need to live. These are toys, gadgets, jewelries and other luxuries.

The children need to understand that some things need to be prioritized, that’s why they may not really get the things they want. Teaching the kids at an early age would make them financially responsible, and they will grow up learning to prioritize their ‘needs’ from their ‘wants.’

Parents too need to control themselves sometimes. Because they love their children so much that they always give in to what their children ask, however just like what’s been said, it’s not really a good training for them as far as value of money is concern. They might grow up believing that they can buy anything that they want as long as they have the money, without even considering if there are other expenses that need to be prioritized.

Buying kids something as a reward is not really bad, especially if they have earned it. This will make the kid appreciate the gift more as he worked hard it. This method not only motivates the children, but also teaches them another value which is diligence and patience.

Remember, don’t just buy stuffs for kids just because you can afford them. You are not helping them this way. Instilling in them the value of money, and the difference of ‘wants’ and ‘need’, will make become a more financially responsible adult.