Teach Your Kids About Saving Money
Saving money is one of the most important aspects of building wealth and securing one’s financial future. Unfortunately, most of us never learn this or have learned the importance of saving money through trial and error, and more importantly, experience.
My Parents Never Taught Me About Money:
I cannot recall that my parents ever gave me advice or any teachable moments while growing up about money. What I do remember from those days is that there was never enough money to last until the end of the month. Do not make the mistakes our parents made, start teaching your kids how to use and save money today.
Here Are Some Tips On How To Teach Your Kids To Save Money:
Start with a piggy bank
The easiest way to start is to give your child a piggy bank. Set them a goal not make use of the money they put it and see how long it takes them to fill it up. Once filled you will give your child another piggy bank, the challenge is to see how many piggy banks they can fill by the end of the year. Show your child that the more he/she save the more their money will grow.
Open up a bank account
Once the piggy banks are full let your child count the money, take your child to the bank to open up a savings account for him/her. Explain to your child that the more money they keep in the account and the longer it stays in the account the more it will grow with interest.
Saving for what they want
When your kids really want the latest and greatest toy or a new action figure, let them know they will have to save up for it. Let them mark the piggy bank to indicate what they saving for.
Lead by example
Children learn by example, so get your own piggy bank put money in it regularly. When you are out shopping, show your child the difference between what items cost and explain why you buy certain items over another.
Reiterate the message that every time you get paid, you save a portion of your check to help prepare for the future.
Talk about money
Start a conversation about money and the importance of saving. Money doesn’t have to be scary or the root of all evil. Use financial discussions as teachable moments. An innocent question such as “Are we rich?” can be answered in a way that emphasizes family values, such as hard work and responsible spending.
Let your child know they can have an allowance if they do chores around the house, but it’s up to them to save up for things they really want.
Also, discuss the difference between needs and wants and tell your child you are always open to talking about money and new ways to save. Ask your child about what they want to save up for. Ask them about the future and if they want for their future.
Let your child know you’re always open to having a conversation about money can encourage them to ask questions of their own to keep learning.
Teaching kids how to save money may seem like a tough task. But try to implement these tips, you can make your child’s understanding of money fun and accessible. It’s an investment in knowledge that truly pays the best interest.
Bank Account for kids
Start to teach your kid about money with the Standard Bank Kidz Banking App.
Teach your kid about budgeting. Read what is a budget.