8 fun ways to teach kids about money with holiday shopping

Holiday shopping is often a mix of excitement, chaos, and opportunity… all wrapped up in pretty paper. Between wish lists, sales, and store runs, kids are watching how we make decisions about spending money more than any other time of year. That makes it the perfect time to turn holiday shopping into lasting money lessons.

We consulted a few parenting and money experts to compile this list of top ways to teach kids about money using the holiday shopping season. Let’s go!

1. Start with a family budget

Money lessons hit home when kids see how spending can quickly add up. Let them in on the process of setting a holiday budget for gifts, food, or decorations. 

Dr. Edmund H. Moore, author of “Financial Freedom: Doing Nothing Is An Option,” suggests introducing budgeting concepts with something tangible. “Define the concepts of budgeting (flash cards, their online equivalent, verbally, and with objects),” he says. “Detail the difference between needs and wants (used bicycle vs. a new bicycle), and include the concept of delayed gratification (a few months vs. today).”

Even simple conversations like, “We have $200 for gifts. How should we divide it?” can help kids connect the dots between choices and limits.

2. Give kids their own mini budget

Letting kids manage a small part of the holiday budget gives them confidence and a sense of independence. Jen Davidson, author of “Keep Talking: Conversations with Our Kids When They Want Us Least but Need Us Most,” used to hand her kids a small amount of money and take them to a craft fair. “It was a great way to see how they spent it while reminding them to focus on others instead of looking for things they wanted. It's eye-opening for them to see how quickly money disappears,” she says.

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Letting them take charge, even in a small way, shows them what it feels like to make trade-offs, and how quickly money can disappear if they don't use a budget.

3. Turn generosity into a game

Davidson suggests turning kids into the “Chief Giving Officer” for one small part of the budget. “Give them $20 (or whatever amount fits) and challenge them to decide how it’s spent. Maybe they choose to buy supplies for a local shelter or pick gifts for grandparents. It’s not about the money, it’s about ownership and seeing generosity as joyful.”

Her family even created “care kits” to hand out during the holidays with simple things like socks, snacks, chapstick, and water bottles. “It became one of our favorite holiday traditions,” she adds.

Joanna Smykowski, attorney and expert in co-parenting and family transitions at Custody X Change, agrees that real-world experiences are where the best lessons happen. “Money lessons don’t start with math—they start with moments," she says. "In my work with families, I’ve seen that the most effective lessons about generosity and spending aren’t taught through lectures, but through real-world experiences that connect emotion to value.”

Smykowski calls one approach “shared giving.” “Parents set a budget for gifts, then give their child a portion of it to decide how to spend on someone else,” she explains. “It transforms the idea of gift-giving from ‘getting’ to ‘choosing’ and builds empathy.”

4. Compare prices in real life and online

Dr. Moore recommends letting kids see how comparison shopping works. “Use a physical store flyer to look at the prices of various products and compare those costs online—a visit to a physical store will allow one to physically examine the cost of comparable products (candy, tennis shoes).”

Smykowski calls this idea “transparent shopping.” “Letting kids see price comparisons or discuss returns teaches them how money moves, not just how it’s spent,” she explains. “When parents involve their children in these small financial decisions, it creates awareness early on.”

The more kids see behind the curtain (comparing, deciding, returning), the more confident they’ll be managing money later.

5. Cook up a cost comparison at home

Dr. Moore’s “burger game” is a creative way to bring money concepts to life. “Purchase a pound of ground beef, buns, lettuce, tomatoes, mustard, and ketchup, and cook the burger while costing out all products. Visit a burger place and purchase a similar burger at a set cost. Compare the cost of the home-cooked burger and the purchased burger to introduce the concept of unit cost, and even discuss that labor is included in the cost.”

The burger can be swapped with pizza, ice cream, or really anything kids love. It’s a fun way to connect everyday choices to actual money.

6. Practice generosity, but with limits

Giving is an important part of the holidays, but sometimes generosity can turn into overspending. Dr. Moore suggests bringing kids into the bigger picture: “This comes back to the budget concept that defines where one’s economic resources go… 10% to tithes; 5% to gifts; 20% savings; 30% to household; 5% to vacations; 30% otherwise (transportation, clothing, food, utilities, insurance, other). Discuss how and whom your generosity helps in real life.”

Davidson adds that generosity isn’t about the price tag. “Talk about why we give before you talk about what we give. Explain that generosity isn’t measured by cost, but by care. Sometimes the most generous thing we can give is time, visiting an elderly neighbor, bringing cookies, volunteering, or making something thoughtful by hand.”

When kids understand the “why” behind giving, setting spending limits feels natural instead of restrictive.

7. Show them how to shop (and return) smart 

Davidson’s advice to parents is simple: let kids watch. “Bring them into the real-world process. Have them compare prices online or return an item that didn’t work out. Money moves, changes, and requires choices. Let them see you pause before buying, or decide to wait for a sale, or coupons.”

Dr. Moore suggests taking this one step further: “Purchase an agreed-to holiday item online after comparison-pricing it in a physical store, and be sure to discuss the shipping costs. Finally, let them see you go through the entire return process for an item.”

Seeing how transactions work from start to finish helps kids grasp that spending doesn’t end when you swipe the card.

8. Keep the “magic” without overspending

For older kids who notice prices, honesty goes a long way. Davidson shares, “The magic doesn’t have to come from endless budgets; it can come from connection. When kids are old enough to notice the cost of things, they’re also old enough to notice your priorities. Be honest. We had years when we said, ‘We’re focusing on a few meaningful gifts this year and adding in more moments and experiences.’”

Dr. Moore reminds families to stay grounded: “Never spend more than you have—avoid debt that one cannot pay off before the credit bill is due, even in a season of ‘holiday magic.’ Inform your children about your budget and introduce the concept of debt.”

These lessons remind kids that the joy of the holidays comes from togetherness, not totals.

What money lessons kids learn from holiday shopping

Through holiday shopping, kids experience real-world money in action. They learn:

• How to make choices within a budget

• The difference between needs and wants

• That generosity feels good, and doesn’t require spending big

• How to plan, compare, and think before they buy

As Smykowski puts it, “The goal isn’t to make kids cautious with money; it’s to help them see that generosity and responsibility can exist beautifully side by side.”

Keep the money lessons going after the holidays

Once the holidays are wrapped up, there are a lot of ways to keep the conversations going. Ask your kids what they learned, what surprised them, and how they might plan differently next year. You can even set up simple savings goals, like next year’s gift fund, to keep the spirit of budgeting alive all year long.

And if you want a hands-on way to keep those lessons going, Greenlight makes it easy. Kids can set savings goals, earn money through chores, track spending, and even give to causes they care about, all under your guidance.

The holidays may come and go, but the money habits your kids learn during them can last a lifetime.

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