Children should be taught to save money from an early age. The children that are taught to appreciate the value of money will surely be thankful for this important lesson, because the earlier they learn to appreciate the value of money, the better will they know manage their own finances. Here are some of the most basic but essential tips on how to make your children start saving from early age.
- 1. Money does not grow on the tree
While you withdraw your cash via ATM, the children that observe that might get the feeling that it is how the money comes – it is enough just to squeeze a key and notes the cash will fall out from the machine. You should explain to your child that they have to work hard to get money and that bank and ATMs are merely their safe containers.
- Show them how to spend money wisely
To teach your children to wisely manage their money, give them pocket money and watch how they spend it. If your child uses its pocket money buy some cool random toy that they noticed in the windows of a store, they will not have enough money left to purchase those items that they desperately wants to have. That lesion will be the best way for them to understand the consequences of unreasonable or unplanned spending of money.
- 3. Waiting is worth it
The saying “buy now, pay later ‘ definitely is bad guideline to children who will one day become self-sufficient when recklessly swinging a credit card and so run into debt and desperately stream into bankruptcy. To prevent this, teach them how waiting definitely pays off.
- 4. Planning and budget setting
Children should learn that it is not wise to spend all their money. Therefore, before you go to purchase, do make a budget and a plan – what to buy, in which stores and how much you plan to spend. Compare prices in different stores; make sure that the products are on sale and how much you save while. Remember pushing the points for a discount if you collect them. Children will very quickly realize all the benefits of planned purchases.
- 5. Saving money for new toys
Those who save diligently, always has enough – is the premise that you should explain your little ones. If your child wants a new toy, and there is not enough money to buy it, tell him to start saving money in order to afford himself that desire. As soon as they save enough money, take your child to the store let him buy the desired toy. Such experience will make them want to continue to save for a new toys and he will understand that saving is a great thing.