Covering back-to-school expenses such as shoes and headphones can be daunting enough without your child asking for costly brand-name items.
"This time of year is already a tough time for families," says Zena Burgess, CEO of the Australian Psychological Society, highlighting the festive season is "synonymous with spending money".
"The costs of beginning a new school year really add up and people have to make difficult decisions about where to spend money and save money."
Dr Burgess says that can cause a lot of stress for families, but including children in the budgeting and decision making for school supplies is key to helping everyone get on the same page about what you can and can't afford.
Brand comparison is also an opportunity for kids to increase their financial literacy and financial empathy — setting them up for life, says Katrina Samios, CEO and director at the Financial Basics Foundation.
How to involve children in the budgeting process
Despite a social media ban for children under 16, marketing is everywhere, such as product placement in movies and advertising in digital spaces.
Children are frequently influenced to buy, especially when they see their peers consuming those products, explains Dr Burgess.
If that desire isn't met, children can feel jealous or even insecure, she says.
Ms Samios says children learning about marketing and algorithms will help them throughout life.
"It can protect them against that pressure even later down the track."
She says children should be included in back-to-school budgeting in several ways.
Speaking openly with your child, in an age-appropriate way, about costs and planning for purchases can reduce "anxiety and peer pressure", says Ms Samios.
"So kids understand the financial position [of the family].
"Those budgeting conversations are really important in building kids own knowledge and confidence in that task."
Ms Samios recommends creating a back-to-school list with your child.
"Decide together what on the list is needed, and what's already in good shape and perhaps can wait.
"Also break it down into needs and wants. There are essential things like text books … and the wants become the trendy backpack, shoes or water bottle."
She says an item might sit in what we need, and what we want, "which is a good visual way of doing it."
Dr Burgess says children are not too young to understand that buying X might mean you miss out on Y.
Complete a cost comparison for items on the list, says Ms Samios, for example, comparing two pairs of shoes.
"Have an honest conversation about whether the more expensive item is worth it. Look at durability, for example. What is the reason we would want that brand?"
This process can demonstrate that just because something is brand name, doesn't mean it's better than a more affordable alternative, says Dr Burgess.
For example, "teaching young people about what a piece of clothing is made of, is it different to another brand, where was it made, and the implications of those things," she says.
And if you have the privilege to buy a more expensive item, that's still worth unpacking why you might choose to do so.
"A $3 shirt may be the same as one that costs $30, but there may be environmental reasons as to why that is a good or bad choice," Dr Burgess says.
Often kids want to be more ethically conscious, she says, and that can also include sourcing second-hand items from op shops.
Ms Samios says looking at getting better value, finding sales, and considering second-hand items are all great tools for building your child's financial capability skills.
Role modelling and practised responses
The above conversations mean your child will be armed with key phrases and responses if they are challenged by peers, says Ms Samios.
For example, they may express wanting a brand name item, and you can respond by saying, "thanks for saying you want that, I appreciate your perspective. Let's have a look at that compared to another brand and look at the benefits".
She says the child then may be able to say at school: "Well, we had a look at that brand, but that doesn't fit our budget and needs, and I actually found this other one to be better."
Or: "We bought this for now, but I'm looking to save for that other option down the track."
"They're really powerful skills," says Ms Samois.
But Dr Burgess says parents need to practise what they preach.
"If a parent is wanting their child not to be influenced by brands, they need to demonstrate that themselves. You model it."
Teaching financial empathy
These conversations can benefit children no matter what your family's financial position is, says Ms Samois.
"Having money doesn't necessarily mean you are financially literate. These same concepts have to be taught. And personal values and goals around this, regardless of how easy it may or may not come."
You can also help your child empathise with people who couldn't afford, or choose not to buy trendy items, says Ms Burgess.
"People are more than brands … it helps for children to model empathy and praise generosity and inclusion."
