# Family Life

Letting Kids Make Financial Mistakes

Letting Kids Make Financial Mistakes - TheEngineersKids

Last week, I posted about our trip to the Pacific Marine Mammal Center, during the trip we purchased three stuffed seals named Shiny, Arrt-Arrt, and Sealy from the gift shop. Up until this trip the kids had been amassing a large stash of birthday and Christmas money. I don’t really like shopping with the kids, so they have to really beg for me to take them to spend their money. Previous to said trip to see the seals, I made them list a few things they were thinking of buying, which did not include stuffed seals.

They all insisted on buying a stuffed seal, even after I reminded them of the cowgirls dress-up clothes and rollerblades they had on their shopping lists at home. And I try really hard not to dictate what they purchase with their money, so I said, “Hey, it’s your money,” and off we went with three over-priced seals. I should have known not to go to a gift shop…lesson learned.

A good conversation and lesson arose from the experience though. The kids seemed to be convinced that you should be able to return an item to a store at any time for a full refund. Otherwise, the store was stealing your money, because you no longer wanted the item, so you shouldn’t be obligated to pay for it. Sometimes it surprises me how they think the world works.

After a thousand “why” questions about how stores do in fact have to make a profit, buyers are giving up rights to return an item when they use it, and that stores will accept some returns if they can sell that item to a new customer, they began to understand shopping a bit more. I don’t think I persuaded them to believe in the philosophy of return policies, but I did convince them that no store was going to take back their dirty old toys five years down the road.

At least one child is already regretting her hasty seal purchase. I told her we would review her finances and come up with a plan for her to earn the money she needs to get her cowgirl dress-up clothes.

I love a lesson learned young. Better to regret buying a stuffed seal, than a fancy sports car or too-big house. For many years now, my husband has benefitted financially from a My Pal 2 he regretted buying in the 80s.

What financial lessons are you glad your kids learned while young? What did you buy as a kid that taught you a lesson?