Teach your child to Save
From an early age, kids get a fascination about money and its buying power, the ability it possesses to earn them their desires. Though they have not fully realised the concept of owning money, saving and budgeting, as a parent you need to teach your child how to keep a share of the allowance they ‘earn’ or receive as gifts. Start educating them about savings as early as when they learn how to count. Educating your child and motivating him to save money is a definite way of empowering him to be a future investor and a big-time saver. It also teaches him how to manage his own money. How do you go about it?
Get a piggy bank for every one of your child
A piggy bank allows your child to place his coins in a secure place where he cannot withdraw until he has decided he no longer wants to save in it. A translucent one would be ideal, as it helps him see the value of his efforts as the coins build up. It motivates him to fill it up, thus saving more.
A coin for a coin
For every coin a child saves in the piggy bank, place another of the same value-sort of paying up for the interest they are not getting at the bank. This incentive will encourage him to set aside more money for saving; knowing that in turn it will result to getting him- more from you. Discuss this with your child and stick to your side of the promise.
Increase their allowance after a period of saving without spending
Another great way to help your child save more is by increasing what you give him. This will motivate him to save more.
Open a junior bank account together
The value of having your child along when opening an account for them is that he will receive useful information on managing his account. He will also learn the basics of banking by observing other junior account holders.
Talk of the value of saving as opposed to spending
As the child grows older and can finally understands how a financial institution works, you can explain the value that a financial institution accumulates for a client in terms of interests for every successful saving. Do not be so strict about him withdrawing and spending his savings, he may be discouraged to save at all. Instead let him know that having an accumulated sum will get him more quality or quantity of the items he needs to acquire.
Practice what you preach
If you the parent are a spend thrift, chances are your child will follow in the same steps, no matter how many hours you spend teaching him how to keep his monies aside. Remember children are keen observers and will follow what you do. The greatest way to demonstrate your saving is by use of shopping trips. These are great opportunities to teach children the of money.
Allow the child to make spending choices
After having an open talk on the advantages of saving and budgeting, allow your child to put/apply the knowledge into an activity. Whether he makes good or poor choices, he will best learn from the actual spending of his hard earned cash. Be ready to intervene and guide him because he is still a child.
END: BL 26 / 16