Wednesday, June 28, 2017

Top 7 Ways To Teach Your Kids About Saving Money

I have two kids and my elder son loves saving money, I call him ‘The Little Banker’. He just loves to see his money (both coins and pounds) pile up in his fancy piggy bank. 

For him, it is quite exciting to empty his piggy bank and take the money to the credit union to receive a cash prize. It is watching his money pile grow and the attraction of receiving a prize that motivates my son to save. 

I know there are various others ways in which I can teach my kid to save money.

Money experts, around the world, are of the view that the first step is to make the savings fun. In addition, the kids should be taught to save money at an early stage. 

Then as the kids grow up, they should be made familiar to use more sophisticated ways. So, here are top 7 ways to teach your kids about saving money.

Show Them The Money

First and foremost, remember it is never too early to make your kids familiar with the finances. With online shopping, internet banking, and credit card payments, the kids don’t get to see the real notes and coins. 

If they somehow do, it is most of the times, money coming out of an ATM machine. So, it is important to start young and take some time out from your busy schedule to let the kids know that the bank takes care of the money you earn. You can even play shops and make sure you use real cash instead of plastic money.

Having A Piggy Bank

This is one of the most successful & used methods of teaching your kids the significance of saving money while giving the kids an easy and convenient way to do it. Tell your kids you have to fill their piggy banks with money. 

Exemplify that the piggy bank is for saving money for their future. A piggy bank will also help your kid to know the progress he/she is making. You can guide them to make creative piggy banks, just to make savings more interesting and fun.

Give Them Allowance

Try to make a habit of giving your kid a weekly allowance, this will help your kids to learn how to manage the money and also save towards a particular goal. 

You can choose to tie the allowance of the older kids to a particular task or assignment to understand the value of money and making them understand the value of money.

Set An Example

One of the best and the easiest things you can do is to make your kid see that you also love saving money. You can put some money in the jar while they are watching you and make sure you tell them it is your savings jar. 

This will help your kids to understand that saving is a normal thing. Besides, most of the kids want to be just like their parents, so seeing you save money will provide them valuable money lessons that will surely inspire them to save.

Adopt Real Life Experiences

If you want to teach your kid about money, teaching them with real life experiences will be a boon. You can take your kids along with you to the shopping malls or the grocery store. 

This is where you can teach them how to do the price comparison and little insight about inflation will surely come handy. If you are going to the ATM, you can tell your kids the whole process how to use the ATM machine and about the things they should keep in mind while using the machine.

Use Money Apps

If your kids have started using a smartphone, make sure you engage them in money skill apps, geared precisely for the kids. 

You can encourage your kids to download apps like GreenStreets. This is a game where the kids will get to learn important money saving & math skills including – earning money, setting goals, budgeting, saving & spending decision making. 

I am sure the kids will surely love this game as it is both educational and fun at the same time. You can also search for such related games.

Keep It Regular And Positive

Make sure you are not overstressing on how much your kid is actually saving on a monthly basis, especially in the initial stages. Appreciate the regular contributions no matter how small they are; this will teach your kids how to prioritise their personal finances.

Author Bio 

Sophia Jones tries to live her life like the sun – setting her sights high and vowing to always rise up again. Always game for an adventure, Sophia loves widening readers and her own expectations of our vast, beautiful world. As a journalist, Sophia writes to inform. As a creative writer, Sophia strives to inspire. Overall, she hopes to captivate. She currently writes for sites like followthesteps etc.

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