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Saving: Teaching Your Kids on How to Save
"A penny saved is a penny earned"
Teaching your kids on how to save is a good start but it's not easy. Letting them understand the value of saving money rather than the amount of money they save is the most important thing. Kids will always be kids. If they got money in their hands, first thing they would think is spending it immediately. You need a lot patience in teaching them.
Saving is what I've learned from my childhood. Thanks to my mom, she taught me how to save at a very young age; I learned to save a portion of my allowances which my parents gave me. I put it in my money box and at the end of the year; I spent it for the things I'd like to buy.
Here are some tips on how to teach your kids:
- Set as an Example. Everything starts at home. Parents should be a role model, show to kids that you are practicing the idea of saving money wisely.
- Showing them the bills. By showing them the bills will let them feel that they are part in managing family's financial situation.
- Introduce item like Piggy banks. This is the traditional item of storing money. It can be money box or any other shape which we usually stores our coins. Help them to split up their cash, separate a portion of their cash to put in their piggy banks.
- Open Savings Account. Open an account for them but monitor at the same time. Encourage them to save regularly.
- Help them set a goal. Introduce and help them to make a plan for something they want to buy (i.e. toys, clothes, shoes, etc.) and let them achieve that plan.
- Reward their effort. Let them enjoy spending their own savings. By this way they will feel that saving is not only a lttle sacrifice but having fun as well.
If your kids understand the importance of saving against spending, they will gradually adapt the idea on which things are on top priority. This will guide to become responsible person someday in terms of money management.