3 Ways to Make Your Kids More Price-Conscious

When you’re little and the concept of money is still new, it’s hard to understand how prices work. The idea that a new LEGO set can cost ten times as much as a small stuffed animal can be mind blowing to a child who doesn’t have the very adult-level of understanding around things like production costs, marketing, and pure brand recognition. So how do we teach our kids that not only do prices matter, but that comparing prices and shopping around for the best price can make a very big difference down the road?

Here are three ways you can start bringing the concept of prices into everyday conversations with your kids and even weave it into your daily activities.

At Home: track your utility bills

Those pesky bills that show up every month are actually a great opportunity to have early conversations with your kids about prices, budgeting, and making money-smart decisions. Pick one bill, something that’s somewhat consistent month-to-month but not exactly the same, like your water or electricity bill, and show it to your kids. Many young adults don’t see their first bill until they are already living on their own, so this is also a great way to get them used to the idea of being responsible for recurring monthly payments. 

Write down how much this first bill is on a sheet of paper that you keep in plain sight every day, maybe on the refrigerator or taped on the wall, or even hang the actual statement itself! The goal of this exercise isn’t to obsess over the price, but to be aware of it and to explain to your kids that the whole family can control if the cost goes up or down the next month. As a family, keep track of this specific utility for at least 3 months and see how it fluctuates. You can even play a game to see if you can make the next month lower by turning off all the lights before leaving a room, or making a conscious effort to use less water. However you want to approach it with your kids, the key is to talk about it and get them familiar with the idea that they have control over how much money the family owes for this particular service. 

Out Shopping: play “guess that price”

Whether you’re shopping for groceries, clothes, or something more fun like toys, it’s important to find ways to make your kids price-aware. Aside from setting a budget and telling your kids that they can only pick items that fit within that budget, there are plenty of ways to make bargain hunting a little more fun. When I’m at a store with my kids and not in a particular rush, I like to play “guess that price” with them. This is a game that can go both ways, where I sometimes pick up an item and ask them to guess how much it is, but I also let them try to stump me. 

The point of this exercise is to show kids that sometimes it’s deceiving how much something might cost. The more you can get them used to not only checking the price of an item, but also getting familiar with average prices for everyday items, the sooner they will be able to make their own price-conscious decisions when they are eventually shopping on their own or with friends. 

On Vacation: follow that price!

On a recent vacation with our family, we happened to be traveling across the country at a time when gas prices were at an all-time high. We played a little game where we looked at the price of gas at the station closest to our house, and then again at the station closest to the airport. The difference was astonishing. Instead of just noticing it to myself, I made a point to call it out to the whole family, which turned into somewhat of a game where we continued to follow the price of gas all the way out to California. 

Not only was there an incredible difference in the cost from state-to-state, but the kids quickly picked up on the fact that gas prices were a lot higher in big cities and near airports than it was in more suburban and rural settings. It was amazing to see how interested the kids actually were in understanding why gas prices changed so much, and why people with rental cars would be more likely to need gas right before returning to the airport. Such a small little game turned into quite the early lesson in supply and demand!