Saving Money is a habit which children should inculcate right from their childhood. This is one habit which will benefit them as adults. Todays children think money grows on trees. They have the backing of their parents and so do not take the initiative to save. They should be taught how to Save , Spend as well as give back to society. Kobliner says “children as young as three years old can grasp financial concepts like saving and spending.” Children should not be given everything they ask for. They should be told that they should save the money they get as an allowance or a reward for helping out at home . A child should be shown how to save money.
- Parents can keep three Piggy Banks on their table. Whatever allowance or reward they get should be divided into three parts. The Piggy Banks should be labeled as Saving, Spending & Donating. Here they will learn that they have to even give back to society. They need not give a very huge amount . But there should be some contribution from them.
- Children should be given a monthly allowance depending on the chores they help out in at home. They can be allowed to keep the change which remains after buying something their mother wanted urgently. This gives them a boost . They can also help in home chores like buying vegetables, cleaning the car and other such small things.
- Give your children small goals to save money. Give them targets. If your daughter wants a doll. Tell her that she can buy it after saving for it. But see that it is not very costly . Else she will lose that enthusiasm to save for it.
- Children should be taught that money is only a tool that they have to use to exchange for material things. It is not meant to be treated as a thing of Evil.
- Saving should be a part of your discussion with kids maybe not everyday but atleast once in a few days.
- They should be encouraged to save for a rainy day. That will also teach them the value of money.
- Take children to the Banks or stores and teach them concepts of money. This can be a good way to introduce money to younger children.
- Play imaginary games with them like pretending that they are he shop keepers and you go and buy groceries from them in exchange of money. This is how they can be exposed to the buying and selling transactions.
- Opening a Bank account for the child and allowing him to deposit the money in his account himself is a very good way to set a goal for the child. This will make him want to see the figure in his bank account grow.
- Some Basic rules should be created to help the child mange his money. He should be allowed to do things independently so that if he makes mistakes he will understand them and may never commit those same mistakes again.
- Teenage is a very important phase in a childs life. They are old enough to understand the importance of saving. Your teen should be encouraged to do summer jobs and deposit the money in a savings account especially opened for him.
- Your teenager has more reasons to save as all his wants will come with more expensive tags than when he was little. He should be told that he could probably use the money in an emergency or for a large purchase.
- As Parents you have to set a good example for financial habits. Remember … Teenagers are watching you closely and learning from you.
- Teenagers should be encouraged to read about finanes and how it works,
- DO not easily help your teenager if he falls short of money . Remind him about the rainy day talk you had with him earlier. It is very important for them to realize where they went wrong with their budgeting, They may be angry with you momentarily. But will Ultimately thank you for teaching them the importance of saving.
When a Child has a healthy relationship with money from his formative years he will be a very wise and it will help him make sound Financial decisions in his Adulthood. It will spare him the pain of damaging situations in his future.