Teaching your kids the value of money is an important lesson that can be taught in various ways. You can teach them the importance on saving at an early age to shape them up for adulthood where these lessons will come in handy. It is important to learn the principle of responsibly handling money which is why these tips and tricks will surely be fruitful in their future.
Get a piggy bank
The first and foremost thing to do when you want to teach them about saving is get them a piggy bank. This simple action teaches your children to save from a very young age, ultimately giving your child the responsibility of handling money. Either give them a time frame where they could save or start making them save the extra coins or cash that they have left, you can make this process quite interesting for them as well. Then, decide on a date and count their savings and let them spend it on whatever they want. This way, they will learn the basics of simple recordkeeping.
Use math for money saving
Once your child has learnt the basics of math, start giving them the responsibility of spending. Whether you take them out with you or give them a chore they need to complete, include small amounts of money where they will need to subtract and add. In addition, games like Monopoly will be of great use here. Let a little practicality come in at this point.
Take them to the bank
Nowadays, a lot of banks have schemes where they allow children to open savings accounts. Take your child to the bank and with a little help, let them deal with the teller themselves so that they learn the terms and conditions of their account. Suggest to them to deposit an amount on a monthly basis as this encourages them to look forward to saving as well. Turn on your online banking and let your kids view their activity online so that they are motivated to run their own personal account.
Well, they are kids after all! The main aim for them to save is ultimately spend it all – but wisely. Let them have their own spending goals and encourage them to save more so that they can get whatever they dream of. Some aims can be to get a certain gaming console or a bike they really want. This creates a sense of responsibility in a child and helps them save more efficiently.
Let them shop
It’s time to get practical! When you’re taking your kids out, give them some money to spend on their own. This is the easiest way to observe their spending habits and their general attitude towards money. If your kid wants to spend more than their allowance, there is a strict no for that. Advise them to be patient and save up for whatever they want instead and educate them on sensible spending. Remind them to stay within a limited budget to get whatever they want.
In our world today, credit cards are a blessing and most of us use them. However, they are a temptation to spend money that you don’t have and then pay more for that privilege. It is the best thing to set an example by carrying cash in your pocket instead as it encourages the use of money responsibly. It is the easiest way your kids will learn to handle money sensibly. Give them their allowance and encourage them to save in different ways. Make sure they are familiar with recordkeeping and how saving accounts work, and then they’re set for life.
These simple effective measures are a good way to impart some wisdom and equip your child for his/her adult life.
This article is from BQ Plus’s Issue 9 – March-April 2017.
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