My 8-year-old daughter has recently gotten caught up in the “dumpling squishy” craze.

If you have a young child, you might already be familiar with how this works. The squishies come in mystery packages, so you don’t know which one you’re getting until you open it. Naturally, this element of surprise can make buying just one a little difficult.

Over the past week, my daughter has repeatedly asked my wife and me to take her to different stores around town so she can buy another one. Her argument is quite simple: “They’re not that expensive, so what’s the big deal?”

As it turns out, that was a pretty good opening for a conversation about money.

Small Purchases Can Add Up

One of the first things we discussed was how easy it is to focus on the cost of a single purchase rather than the total cost of a habit.

Spending a few dollars on something may not seem significant at first. However, if you make that same small purchase repeatedly, those purchases can eventually add up to a much bigger number.

This isn’t just a lesson for an 8-year-old buying toys; adults face the same challenge. A coffee here, an online purchase there, another subscription or meal out: none of them may seem like a major expense individually.

The problem usually isn’t one purchase. It’s the pattern of spending.

Teaching kids to recognize that early can help them understand that spending decisions matter, even when the dollar amount seems small.

Every Dollar Has Another Possible Use

We also discussed some of the bigger things she had recently asked us to buy.

I explained that if she really wants one of those items, she could start saving her money toward it. But that also means making choices along the way.

Every time she spends money on another small toy, that’s money she no longer has available for the bigger thing she says she wants.

It is a simple introduction to an important financial concept: money is limited, and choosing to spend it in one way can mean giving up the opportunity to use it another way.

We sometimes think of budgeting as a list of things we can’t buy. Instead, it can be helpful to think of a budget as a way to decide what we want our money to accomplish.

Instant Gratification vs. Delayed Gratification

The mystery-pack aspect of these toys also opened the door to another conversation: instant gratification versus delayed gratification.

For my daughter, part of the appeal is the excitement of opening the package now. Saving for something several weeks or months away doesn’t provide quite the same immediate thrill.

Again, that’s not just an 8-year-old problem.

Adults face similar tradeoffs throughout their financial lives. Should we spend money today, or save for a vacation? Do we upgrade the car, or contribute more toward retirement? Do we buy something because we want it right now, or wait because there’s something more important we want later?

Learning to delay gratification and balance what we want today with what we may want in the future can be an important part of developing healthy financial habits.

Use Everyday Moments to Talk About Money

I’m not sure how much of my conversation truly resonated with my daughter. She’s eight, and there’s a good chance she was mostly wondering when I was going to stop talking so she could ask about the squishy toy again.

But we had the conversation anyway.

Teaching kids about money doesn’t always have to mean sitting them down for a formal lesson on budgeting, investing, or compound interest. Some of the best opportunities to teach financial concepts happen naturally in everyday life.

When they ask for a new toy, talk about saving. When they spend their allowance, talk about choices. When they want something expensive, help them set a goal. And when they decide not to buy something today because they’re saving for something tomorrow, recognize that decision.

Those small conversations can help shape habits over time.

Our kids may not remember every financial lesson we try to teach them, but everyday moments can give them a foundation for understanding a few key principles: small purchases add up, money involves tradeoffs, and sometimes waiting for what you really want is better than buying what you want right now.

And if the lesson happens to start with a dumpling squishy, that’s not a bad place to begin.

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