The holiday season is upon us and many families are excitedly preparing wish lists and shopping for holiday gifts. During this time of joy and cheer, don't forget that this is a great time to think through annual spending habits and evaluate your family’s approach toward holiday gift giving.

The holidays can also be an ideal time to talk to your kids about money – with all the list-making and excitement around gifts, kids have an emotional interest and will be able to make connections to many of the lessons you share.

Here are a few tips to help parents spend wisely this holiday season and use the holidays to teach kids smart money lessons.

Tip 1: Priorities and trade-offs

It is important to teach kids the value of prioritizing expenses when planning large purchases. Children can also learn how to make trade-offs as a way to budget for purchases. For example, you may suggest doing a coordinated gift exchange in order to avoid buying numerous gifts for each member of the family.

Tip 2: Make a list

Most shoppers make a list when beginning holiday shopping; however, it will be easier to spend wisely if you assign each person a dollar value, instead of an item. That way you don't feel compelled to purchase the specific item on your list when it turns out to be more expensive than expected.

Tip 3: Don't feel guilty

Don't feel like the amount you spend is a direct reflection of how much you care about your loved one. Many meaningful gifts can be inexpensive or homemade, like a hand-knit scarf or a free night of babysitting.

Tip 4: Share your strategy

Explain to your kids where the money is coming from to buy gifts. Let them know how you've saved for gifts – if you designate a dollar amount for saving each month, have a separate holiday savings account, etc.

Tip 5: Get creative

Suggest the family pitch-in for an event or a large item, instead of purchasing individual gifts, to emphasize the importance of family time. For example, share the cost of a plane ticket for a loved one to visit or a video game console for the family game night. For big-ticket items look into layaway or other programs that allow you to make interest free payments.

Tip 6: Make the most of monetary gifts

Many kids receive monetary gifts from grandparents, godparents, or other family members during the holiday season. Use these gifts as a way to reinforce the ideas of smart saving and spending and the importance of setting financial goals.

Money lessons can continue once the gifts have been opened. The trick to keeping the conversation going throughout the year is to keep it fun. One way to do that is to play The Great Piggy Bank Adventure® with your kids. T. Rowe Price collaborated with Walt Disney Park and Resorts Online to produce this free online board game, which conveys basic financial concepts in a way that is fun and easy for kids to understand.

To expand on the lessons learned through The Great Piggy Bank Adventure®, parents can also download a free financial education activity book from FamilyFinancialHub.com. Playing games like these with your kids creates a common experience that can make it easier for you to have real-life conversations during the holidays.

Stuart Ritter, CFP®, is a T. Rowe Price financial planner and expert in family financial education. He is a father of 3 young kids.

T. Rowe Price and Disney Enterprises, Inc., are not affiliated companies.