Does Your Lifestyle Cost Money? Another Lesson In Choice

Seven steps to teach your kids another area where they can be aware of the money they spend—and make wise choices in their lifestyle. 

Explaining to kids that lifestyle choices cost money is an important step in teaching financial intelligence. Explain what Lifestyle is. Here’s how you can do it effectively:

Use Everyday Examples

Point out real-life costs: "See that smoothie? It costs $5. If we buy one every day, that’s $150 a month."

Talk about bills: "Our electricity, water, and internet all have a cost. If we leave lights on, the bill goes up."

Relate It to Their Desires

Clothes & Shoes: "That name-brand hoodie costs more than a generic one. Why do you think people pay extra?"

Gaming & Subscriptions: "Your online game subscription costs money every month. If you had to pay for it, how would you earn that money?"

Play the “Money Trade-Off” Game

"If you had $20, would you buy a toy, save it, or spend it on snacks?"

"If you had to work for an hour to afford a movie ticket, would you still go?"

Help them connect effort with spending.

Show the Difference between Needs and Wants

Explain that housing, food, and education are needs, but eating out, designer clothes, and vacations are wants.

Give them choices: "Do we eat out once a week, or do we save for a family trip?"

Teach Budgeting Early

Give them a small allowance and let them decide how to use it.

Show them how you plan for household expenses, so they understand the concept of budgeting.

Let Them Earn Money

Encourage chores, small jobs, or entrepreneurial projects. (Give them examples you can actually use.) So many things they can learn and earn in educational ways, such as lemonade stand, handmade arts, or parents’ little assistant.

Once they earn money, ask, "Do you still want to spend it the same way?"

Explain Long-Term Consequences

"If we spend all our money on fun things today, we won’t have enough to buy a house or go on vacation later."

"Some people live paycheck to paycheck because they spend without planning."

By keeping it simple, real, and interactive, kids will gradually understand that lifestyle choices come with a financial cost, and they’ll learn how to make smart decisions. 

Please try to make printable activity or worksheet for this, so the kids have daily guide. It is helping kids to stay consistent and parents stay informed!