TOPIC:

Distinguishing between needs and wants

RESOURCES NEEDED:

Access to a TV

LEARNING OPPORTUNITY:

Some people have very little self-control when it comes to spending money. They often spend more than they have, building up debt, and can often find themselves in financial difficulty. Talk with your child about what it means to “live within your means” – not spending more than you can afford, not taking on more debt than you can comfortably carry, not tapping your future income by spending today so that you can’t afford things you need or want in the future. Every decision made about spending money today has a trade-off – both in terms of what options you have today, and what you could do with that money in the future. Talking with your child about “needs and wants” and the trade-offs they make with every decision they make, can be very helpful to them.

THE ACTIVITY:

• This particular show may be best for teenage girls. You can decide. There are many TV shows that often provide an opportunity to talk with your kids about money. Look for opportunities to do so.
• Watch the TV show “Princess.” This is a Canadian show that each week looks at young women and their extravagant spending habits. The host of the show gives each young woman a series of challenges to reign in their spending and get on track to financial independence.
• Talk with your teen about the strategies the host gives to the contestant.

TIPS:

• Talk with your teen about why a person’s spending might be out of control. Are there other things or ways that could help change this behaviour?