In this article, I will look at ways you can teach children how to save. As we all know money is difficult to earn, save and manage so it is very important to teach children how to save money in their early years so they learn to value it.
Life is full of uncertainties, as they say, this minute you are up and the next you are down. Therefore, it is crucial to saving money for unexpected emergencies, loan payments or unforeseeable circumstances.
The ability to save comes with no age limit all it requires is knowledge of the benefits of saving and discipline. So give your children the head start to learn about money, how to save it and help them be successful in handling money from their younger years into adulthood.
The Importance of Saving Money
Saving money is a habit that can take time to build, and even some adults have yet to master it. Consider this: Just 41% of Americans have savings set aside to cover emergency expenses, according to Bankrate. With that in mind here are some things you can do to get your kids—and perhaps yourself—on the saving bandwagon.
It is also one of the most important aspects of building wealth and having a secure financial foundation. Yet many of us have learned the importance of saving money through trial and error, and more importantly, experience.
In school, we aren’t really taught about the importance of saving and many of us find that as adults, we have to fend for ourselves.
But there are ways to empower the next generation, and that starts by teaching children the importance of saving from a young age. If you are a parent, here are 6 ways to teach your children about saving money.
A lot of teens nowadays do not understand the value of earning and spending money. They were not oriented that investing is necessary even if they are still students. As parents, you play a crucial role in this area.
You should be able to teach your kids on how to save money. They should be able to understand the concept of money and investment as early as childhood. This will prepare them to learn money management, as they grow old.
7 Tips – Teach Children How to Save Money
1. The first step in teaching children the value of saving is to help them understand the difference between wants and needs. Explain that needs include the basics, such as food, shelter and clothing, and wants are all the extras. You can use your own budget as an example to explain how wants should take a back seat to needs in terms of spending.
2. Educate your children about the meaning of money. Once your children have learned how to count, that is the perfect time for you teach them the real meaning of money. You should be consistent and explain to them in simple ways and do this frequently so that they may be able to remember what you taught them.
3. Always explain to them the value of saving money. Make them understand its importance and how it will impact their lives. It is important that you entertain questions from them about money and you should be able to answer them right away.
4. Show them that stuff costs money. Let them take money from their savings and go to the stores with you and pay for something they want. This will help them to understand that you have to have money to get most of the things they want.
5. When giving them their allowances give them it in denominations. Then you can encourage them that they should save some for the future. You can motivate them to do this by telling them that the money can be saved and they can buy a new pair of shoes or the toys they want once they are able to save.
6. You can also teach them to work for money. Start this at your own home. You can pay them every time they clean their rooms, do the dishes or feed their pets. This concept of earning little money will make them think that money is something they have worked for and should be spent wisely.
7. Teach your children about contentment and living within their means. Let them understand the value of appreciating what you have and make the best of it until you are able to change the situation.
Money and saving is not something that is learned by children in one sitting. You should be patient in teaching them and relating the value of money in all of their activities. Children will learn this easily if you are patient and consistent in guiding them and encouraging them in this endeavour.