As a parent, you want to imbibe several teachings in your kids and the importance of saving money stands at the top. Teaching your kid how to save money at an early age will go a long way in developing the healthy habit of effective financial planning. And yes, they are bound turn into financially-responsible adults. While the thought of introducing the idea of saving among your kids can seem like a task, there are several fun ways to help you through
Here are 4 ways that you can use to teach you little ones about money-saving.
Start a light conversation – Money matters do not have to always be one of secrecy. Let your kids join in financial discussions on ways in which responsible-spending can help them build a strong fund over the years. Use easy illustrations on paper or a black board and emphasize the growth of finances through the method of savings. Let them ask you questions and provide them with easy answers for the same.
Get them a piggy bank – We all have fond memories of our first piggy bank and it is time that your get your kids their own first piggy banks too. It is a great way to introduce to them savings and make it an enjoyable task for them. Encourage them to drop in currency coins or notes whenever they wish and strive to leave no room. You can also give them 2 different banks each. Label one ‘savings’ and the other ‘spending’. This will also help them with the concept of understanding budgeting.
Help them visualize goals – Kids are highly fascinated by visuals and you can use this to encourage the concept of saving. Push them to set goals for the future. Explain to them that gathering small amounts of money will help them attain a bigger goal such as buying a toy they always wanted. Pose to them the idea that they could either use the small amount to buy candy or continue to save and get a bigger incentive such as a huge soft toy.
Start a kid’s savings account – A growing number of banks have introduced children’s bank accounts. Opening this kind of an account is one the best ways to give them to the real world of banking. They will know how money can be deposited and how it grows with interest. You must also help them understand their monthly bank statement and all the aspects related to the same.
The above-listed ways will simplify the path to introducing financial savings to your kids. It can be extremely enjoyable for them as they learn different ways to save and manage their funds through their growing years.
