Help children learn the difference between needs and wants. “Needs” are things they can’t manage without (lunch, a basic wardrobe, school supplies). “Wants” are things they’d like to have, but don’t need (ice cream with friends, designer jeans, an expensive backpack).
Once they can differentiate between their needs and wants, kids can prioritize needs over wants, and some wants over others. This will help your child make prudent spending decisions now and as she grows older.