Children should be taught the value of money and the power of saving from a young age. It helps to build a strong financial foundation for them which will benefit them greatly in their adult years. As parents, we should teach our children the right way of spending, investing and saving money instead of leaving everything we own. Teach them how to fish and they will always have fish for a lifetime
Read below on how saving and money tips for children.
Show A Good Example
Be a good example to your children where money is concerned. Keeping your loose change instead of leaving it around will teach them the value of money. Take the trouble to explain to them the different denominations of your coins and dollars and show them how ten 10 cents coins can very quickly add up to a dollar!
Give Them A Coin Box
Children will be thrilled to have a piggy bank or a coin box to fill with loose change. Most children love putting coins into their coin box to hear it clink and watch it grow. Spare them some of your loose change or “pay” them for doing little chores around the house. When their piggy banks are full, take it to the bank with them and open an account under their names to encourage them to save more.
Take Them Grocery Shopping
Bringing your older children with you on grocery shopping trips is a great way to teach them about budgeting. Prepare a shopping list and let them help you with the shopping list while keeping to your budget. These trips provide a good opportunity to teach them smart grocery shopping tips and nutrition in eating fresh produce.
Give Them An Allowance
Older children can be given an allowance to teach them the concept of budgeting and spending within their means. If your child is not used to having an allowance, start with a daily amount and slowly increase it to a weekly amount. Teach them that the allowance does not have to be fully spent and part of it can actually be saved.
Save For A Reward
Teach your children the idea of saving up for a toy or book they want. It helps them learn to cherish the value of the item and the money they have spent on it. You might want to help them out a little if it is an expensive toy by contributing to a certain percentage of it. However, you might be surprised to find your child is no longer interested in it after saving hard for it as he or she might realise that the value of the item does not commensurate their hard work in saving!
Start your children early on the right path to good money management and they will thank you for it.