I was at the bank sometimes ago and a lady came to meet me. She greeted me so warmly that I started wondering where I had met her. She, however, did not let me wonder for too long. She introduced herself and told me that she sells very nice shoes and that I could come have a look. I told her I would have loved to but that I don’t have it in my plan to buy shoes. She quickly answered me saying, “You don’t need to plan for it. As long as you like it and it’s worth it then I believe you should buy it”. I seized the opportunity to give her a little talk on budgeting. I then informed her that I usually plan my purchases as I work with budgets. I asked her for her shop address or business card so I could patronize her later but she had none. She thanked me and left.

My conversation with her made me decide to write on this topic. Do you plan your purchases or do you indulge in impulse buying? Impulse buying is not only an issue when we make major purchases in malls. Even if you buy something worth just N1,000 or $10 regularly without a plan it is impulse buying. I looked up statistics on impulse buying and I was dazed. See some of what I got below:

• 40% of consumer spending is impulse buying
• Younger consumers with higher incomes have a greater percentage of impulse purchases
• It has been estimated that as much as 20% or more of every person’s money is wasted because purchases are unplanned without regard to the value of what  is purchased or whether it is really needed. That accounts for why people can’t save or give. They have spent it on what they do not need

Unless we show our children how to plan for purchases, they will also become impulse buyers and waste their money.

How can you teach kid planned purchases?

The next time you go shopping with your child to the market, the supermarket, the pharmacy or the mall, make a shopping list of things you plan to buy. While shopping, check the list to make sure that you’ve bought what you planned to buy. Don’t overlook anything. At the same time, avoid buying luxuries that you didn’t intend to buy. When you get back home, check your goods and compare them with what you have on your list. Do this with your child. Let your child realize that one doesn’t  just buy because there is money. You should buy what you need and not what you can afford or what you crave for.

You can also allow your child to make his or her own shopping list for the things he or she needs to get (even if you’re paying for them). A great opportunity to practice this is when you’re out together on their school open day or when you’re hunting for clothes, birthday or Christmas presents. Sure they will learn from the activity.

Have a great week and my love to your kids!

– Gbonjubola Sanni