It is that time of year, the darkness begins creeping into the light hours, the pumpkins are hollowed out and set on fire, and all the things that go bump in the night come out from where they were hiding to play. Halloween is upon us. It is undoubtedly a time of excitement, joy and a fair amount of scares for kids of all ages. There is no reason however that Halloween can’t also be used as a fiscal learning opportunity. So, lets learn how to use Halloween to teach your kids about finance.
Negotiate
Halloween is an excellent opportunity to teach your children about negotiation. The candy itself can be used to help them learn how to negotiate. After Halloween in my household, we use the candy to reinforce positive behaviors like cleaning rooms or doing homework.
My eldest has started negotiating for more pieces of candy for the same amount of work. I really like this because a willingness to negotiate a position shows confidence and thought.
I let my kids win some and lose some in the negotiations. If the terms are obviously one sided, they get shut down. If the terms are relatively even and showed thought, I will accept them. Being told no is a good thing. It allows them to understand that they have to give up something to gain something and reassess their trades. This teaches them to compromise in a negotiation and to always keep thinking.
Trading
Trading candy after Halloween is a great way to let children begin to understand the concept of perceived value. The Cambridge dictionary defines perceived value as the following:
the value of a product based on how much customers want or need it, rather than on its real price:
Trading mainly works on this premise. Since there is no set or real price for traded items the individuals trading must assess the value of the items involved in the trade. Both parties must have a perceived value of the other party’s items that exceeds or equals the perceived value of the item they are offering in the trade.
My kids are 3 years apart, so I watch the trades to make sure the older child isn’t taking advantage of the younger one.
The Power of the Dollar
One thing I like to try with my kids after Halloween is offering them money in exchange for their candy. This not only saves them the tummy ache that comes with too much candy, but let’s them learn what money is. I tell them that they can buy anything with their money, toys, different candy, ice cream anything they can think of and afford. This teaches them multiple things. It teaches them that while trading is fun and important, it is limited by the items both trading parties want and have. Currencies make commerce easier. Other things it teaches them is how to read price tags, account for sales tax and try to get the most out of their dollar.
Positive Reinforcement
It was the late American psychologist B.F. Skinner who through his research with rats found that mammals learn things better through positive reinforcement than through punitive measures. Why not use this knowledge to your benefit with your children?
Use the candy or money as a reward for positive behaviors that you would like to see in your child. For years we have only allowed a piece of candy after dinner if all homework was completed and my child’s room was cleaned. This year my son came to me and told me that he would like M&M’s tonight after dinner because he had already completed his homework and cleaned his room. Something that he had to be reminded of as a younger child, was now something he took upon himself to accomplish independently this year.
Looks like ole’ B.F. may have been on to something.
Learn your Child’s Currency
This was something that I learned from my late father in law when my son was born. He looked at me and said, “Learn his currency, learn what motivates him and use it to your advantage. He will learn the lessons easier and become a better person for the lessons.” I never forgot this. It was foreign to the way I thought, but made perfect rational sense. If your child is motivated by toys, why try to tempt her with money? Her currency is toys. Why shove a round peg into a square hole?
After weeks of watching my youngest struggle to focus while playing soccer, he scored three goals and was suddenly all over the field. Elated, he ran off the field after the game and said, “I get ice cream!” When I asked more about this ice cream, he told me his coach told him he could have an ice cream cone for every goal he scored.
Everyone has a currency and there is no one answer solution for all people. That just lacks the attention and forethought needed to optimize positive results. So, watch what motivates your child. It could make all the difference.
Conclusion
Once all the ghouls have returned to the shadows we should leave our kids with more than just sick tummies. Besides, who among us wants to pay for those dental bills. Using Halloween as a financial learning opportunity can give kids lessons that can last a lifetime, or at least longer than the Halloween candy.