Start with a Back-to-School Budget
A recent survey conducted by Caddle and the Retail Council of Canada found that the average amount families spend on back‑to‑school items for kindergarten through grade 12 ranges from $600 to $750 per child when electronics are included. The same study showed that 91 % of parents feel the cost of school shopping has risen compared with previous years, and more than half describe the increase as “a lot more.”
Financial educator Amanda Martin of the Credit Counselling Society points out that this annual shopping trip offers a concrete way for children to see how money works in real life. By laying out a budget before heading to the store, parents can help kids tell the difference between what they truly need and what they simply want.
Zeid Marar, a manager at RBC, suggests starting the conversation by asking children which items are essential for the new school year and which are optional. For example, a calculator or backpack from last year may still be serviceable, making them wants rather than needs, while pencils, notebooks, and a pair of running shoes for a growing child usually fall into the needs category.
When kids are guided to make these distinctions themselves, they gain confidence in their ability to make sound financial choices now and later in life.
Match Independence to Kids’ Ages
The level of responsibility you give a child should match their age and maturity. With younger children, the focus can be on talking through the choices you make while shopping, letting them observe how decisions affect the total cost.
As children enter their early teens, Martin recommends handing them a set budget and allowing them to pick the items they would like to purchase. Encourage them to research prices and look for the best deals. After they have created a list, review it together, help with the actual shopping, and oversee the spending so that some adult guidance remains in place.
This approach gives pre‑teens a taste of independence while still providing a safety net, reinforcing the idea that budgeting is a skill that improves with practice.
Teach the Value Behind Spending
Even with a budget in place, mistakes can happen. Martin stresses that it is important to discuss what went wrong when a purchase does not turn out as expected. Turning a slip‑up into a learning moment helps children understand the connection between their spending choices and their personal values.
Marar adds that building money habits early lays a foundation for lifelong financial success. When kids learn to align their dollars with what matters to them, they are more likely to develop the discipline needed to reach financial freedom later on.
