Buying a bicycle
Your child will learn to:
- become familiar with the ideas of saving and budgeting
- make a choice based on needs and wants
- measure how peers and advertising influence his or her buying choices
- organize a fundraising activity
Activity summary
For children ages 10 to 11
Would your child like to buy a bicycle? Take the opportunity to introduce your child to the ideas of budgeting and making decisions based on needs and wants, and help your child take the first step toward financial autonomy.
Your child is at an age where he or she can make decisions according to needs and wants, save money and follow a set budget.
Understanding the difference between needs and wants
Wanting a new bike is completely normal for a child. But shopping can get complicated when it comes to choosing a model that suits your child's needs, wants and budget! Understanding the difference between a need and a want is a key concept in helping your child learn sound financial habits.
Developing good saving habits
It's not always easy for kids to understand how much things cost. This makes planning for the purchase of a desired item, like a bicycle, a perfect opportunity to teach your child good savings habits.
Make consumption choices
Kids are easily influenced by their peers and advertising. That's why it's important to help them make good choices as consumers, especially with regard to major purchases.
Before buying
1. Discuss motivations- Why does your child want to get a bike?
- What will a bike add to your child's daily life?
- Is it a need or a want?
Help clarify your child's needs and wants by discussing the type of bike to be purchased (e.g., city bike, mountain bike, new, used, colour, etc.).
Ensure that the type of bike chosen is appropriate and realistic for its intended usage. For example, does your child really need a high-end competition bike to go to school?
3. Establish certain ground rulesAfter considering your child's reasons for wanting a bike, establish family rules as well as bike safety rules:
- Clarify the family guidelines for bike use, including times and places for bike riding.
- Discuss bike safety rules (e.g., wearing a helmet, Highway Safety Code).
- Decide if your child must share the bike with other family members.
It's up to you to decide how much you can contribute financially to buying a bicycle. Ideally, you should let your child pay part of the cost, even a small amount. Doing so will let your child have the full buying experience.
5. Support your child's researchProvide guidance to help your child find the information needed to make an informed decision.
Your presence is especially important when your child seeks information on the Internet, in flyers and ads, in bike shops, from social or family networks, from Office de la protection du consommateur, etc.
Ask your child to consider all the different kinds of bikes, their prices and features, necessary and extraneous accessories, warranties offered, etc. in order to choose a bike that meets his or her needs. Ask questions to determine if your child's research was productive:
- Did you make any unexpected discoveries?
- Did you find any interesting sales?
- Did you find anything that perfectly meets your needs?
- Did you decide to buy a used bike?
If necessary, your child can prepare a list of questions to ask when visiting bike shops or meeting people who have bikes for sale. At the shop, let your child speak with the salesperson or other experts.
Examples of questions to ask:
- What kinds of bikes do you have in the store? What are their features? What are their prices?
- What accessories should I get? What are their prices?
- How long have you had your bike, and why are you selling it?
Helping your child learn about saving is important. It's best that you avoid giving or lending your child money to buy the bike sooner. Hard work, perseverance and discipline are needed to help your child learn to take responsibility for choices, stick to a budget and honour commitments.
- Quick tips
Financing Methods - Suggested links
- Encouraging your child to save
(PDF, 144 KB) - I Have a Dream—and I'm Saving For It!
(PDF, 323 KB) - Organizing a garage sale
- Encouraging your child to save
Help your child make a final decision and calculate the real cost of the purchase, including taxes and accessories. Your child learns to calculate the difference between money on hand and the total cost of the purchase.
Your child could, for example:
- use some of his or her pocket money
- sell items no longer being used
- offer services (e.g., babysitting, newspaper delivery, lawn mowing, empty can and bottle collection or helping the elderly). For other ideas, see the Financing methods quick tip.
Help your child identify objects that could potentially be sold. Determine their resale value together and decide how to sell them, e.g., by posting an ad online or in the paper, or organizing a garage sale.
If your child would like to offer a service, help him or her choose one that is age appropriate.
8. Encourage your child to reach the goalSetting money aside little by little is a good habit for your child to develop. If necessary, you can help your child open an account and make an initial deposit.
Since your child will be collecting a decent sum of money to buy a bike, you should encourage him or her to keep it somewhere safe, ideally in an account at a financial institution.
The temptation to borrow from savings will be less if the funds are not immediately at hand in a piggybank. Your child will also learn good money management skills.
All financial institutions offer accounts tailored to youth. An advisor can help guide you to the best choice.
When buying
1. Take your child to the branch or ATMIf your child has deposited the money in a financial institution, go to the branch or ATM to make the withdrawal together.
2. Take your child to the storeAfter collecting the money, your child will be ready to go to the store.
If your child is still missing information, suggest asking the salesperson about warranties, maintenance, in-store repair services, etc.
Ask your own questions as well if your child forgets to ask about certain things.
3. Buy the bikeThe big moment has arrived. Your child is ready to buy the bike!
Encourage your child to keep the receipt as it serves as proof of payment. Without a receipt, it is often difficult and sometimes impossible to obtain a refund or exchange in case of a defect or failure to perform to the level advertised.
After buying
1. Discuss the buying processHelp your child recognize the impact of the process on the final decision.
Is your child satisfied with the purchase? Would he or she feel comfortable going through the buying process again?
Examples of questions to ask:
- What do you think of the process that led to the purchase of your bike? What did you learn? Did you enjoy it?
- Did you find it took too long or was too difficult to save the money? Was it worth the effort?
- If you had to do it again, what would you do differently?
Examples of questions to ask:
- What is your next dream?
- How will you achieve it?
Financing methods
There are many methods a child can use to make money to finance an activity or a purchase. Whether you're a parent or teacher, here are a few ideas you can discuss with your child, depending on his or her talents and interests.
Group financing
To finance a school activity, children can sell calendars, coffee, or pens, collect empty cans, etc.
Individual financing
To make money for personal purposes, your child can sell homemade cookies or cakes, handmade scarves, hats or mittens, lemonade, jewelry, toys he or she no longer plays with, etc.
Your child can also sell services:
- child or animal care
- washing windows
- shoveling snow
- mowing grass
- washing cars
- running errands for elderly people
- household tasks
- gardening
- newspaper delivery