Probably, we all are aware of the popular saying that good things should be started as early as possible. Also, there is another popular saying which tells us that important and needful acts should not be left for tomorrow.
They should be done immediately. So, both of the above sayings highlight the significance of starting early.
The same goes about developing healthy habits in children. Sooner you begin imparting and inculcating good habits, behavior, and morals to children the better it is for them and you also as parents.
After all, your child is your prime responsibility.
So, if you want to see your kid grow into a responsible citizen and moreover, want to see your kid leading a happy life, it is important to inculcate good habits in them as early as possible.
One such important habit that is very much ignored (and I can’t understand why?) in children is the habit of saving money.
Today in this post, we go on to illustrate the importance of developing money saving habit in children and show you numerous Saving Money Tips for Kids.
Is Your Child Cribbing for Things?
Usually, children are seen demanding one thing or the other. It can be their favorite toy, their favorite dress, going out on a trip, buying a smartphone, or some other gadget. The list can simply extend and include various things.
Most of the time the things that children demand are not at all good for them. They are a waste of money and spoil the kid. The kids go on demanding one thing or the other and parents go on fulfilling their every wish.
The scenario becomes even more pathetic as most of the kids today are even not aware of the importance of money let alone the importance of saving money.
I am of the opinion that for this scenario children are not at fault at all. The whole responsibility lies on their parents.
Do you go on fulfilling each demand of your Kid?
Usually, it is seen that parents either fulfill their children wishes totally or scold them for asking too many things. They never try to educate them about what is important to them and what they should not go for.
In fact, parents should understand that if they go on fulfilling each and every demand of their kid, the kid will only be encouraged to ask for more.
Each new day, your kid will raise a new demand, and you have no choice but to fulfill those demands. This approach is rather foolish and not the good of your kid.
There is no learning for the kid. Sooner or later, your kid will take you for granted and put irrational demands for you.
Would you like to see your kid becoming disobedient?
In the beginning, it will not look so scary.
But gradually, it will become a problem for you.
What’s the solution?
A more rational approach would be to make them understand the difference between ‘needs’ and ‘wants.’ Needs can be fulfilled, but wants have no end to them. They just keep on coming as wild grasses in the jungle.
When your kids know what is good for them, they will surely learn not to ask for too many things.
So as a parent if you want to see your children attain an all-round development, you ought to teach your children about saving money.
When they learn that the things they demand can only be purchased when you have money with you, your kids will start saving money for it.
Moreover, they will come to know that money is needed to buy things. When you have less money, and the thing comes for a heavy price, you can’t buy them. So, you ought to save money for buying them.
When children get to know these crucial facts about money and come to know that they have to pay the price for buying things, they will surely not crib anymore. On the contrary, they will learn the importance of saving money.
Here, we have come up with some useful tips and suggestions which you can use to teach your children the importance of saving money.
Moreover, the points that have been illustrated can be easily followed and adopted in reality. These points are thoroughly practical.
If you can take time out from your busy schedule, you can be successful in mentoring your children about the importance of saving money.
Saving Money Tips for Kids
So, here we show you some easy and practical saving money tips for kids. It will help you to teach your kid the importance of saving money.
Teach your kid the importance of saving money
Before your kid learns to save money, you ought to teach your children the importance and value of money. You can teach them that before spending you should have that much money with you.
Your kid must know that everything you purchase from them comes at a price. So, a specific toy has a price which you pay for buying it. When you have the required money, you can then purchase the item.
Spending can only come out from saving. And it is not the case that you spend all you’re saving on one impulsive buying. It is necessary to teach them to avoid making heavy purchases as well.
Use Different Envelopes or Jars
The envelope budgeting system is a very useful money saving tip for different expenses. The best part is that it can work for children as well.
Your kid can have different envelopes or jars for different needs on which your child can draw pictures of what he or she wants. The containers can be used for both short-term savings as well as long-term savings.
So, if your kid wants a specific toy, he or she can draw the picture of the toy on the envelope or jar and can save money for it. It will enable them to understand that some items will take longer than others to save for.
It will help your child save money for short-term and long-term goals. Once they have saved money for the goal, they can then go for buying that stuff.
Help your Child prepare a Savings Goal Chart
First, you ought to know what your child wants to save for. Once it is clear what your child wants to purchase, help your child prepare a savings goal chart.
For example, if your child wants to have a Transformer toy, figure the amount of money needed to purchase it. Then prepare a Savings Goal Chart.
You can have a savings goal chart for each day or per week. It will help your child to know how much time it will take to save the money needed for purchasing the item.
Suppose the toy comes at a price of $50 and your child saves $10 per week, it will take five weeks to save the money needed to purchase the toy.
Each week can be represented by a box, and when the child has set aside the weekly funds for the toy, he or she can put a tick mark or sticker on the box.
This way, your child comes to know how soon he or she will reach his goal. It will motivate the child to keep saving so that he or she can accomplish his goal.
Motivate your child by offering Rewards for Saving Money
Everyone likes to be rewarded, and when it is rewarding your child for saving money, it is even better. When your child embarks on the goal of saving money, he or she needs motivation for keeping it going.
Firstly, by showing interest in saving money, your child has aptly demonstrated that he or she has understood the importance of saving money.
However, at the end of the day, your child is still a kid after all. He or she can be distracted any moment and lose interest in saving money.
So, your role as a parent should be to encourage your child by rewarding for saving money. When your child doesn’t spend a certain amount of time, you should reward him or her with anything that goes on to motivate your child.
It can be a small gift, a toy, perhaps an extra hour of video games, stickers, a pencil set, a gift coupon, or anything that motivates your child. These small acts will keep your child motivated. He or she will feel happy for saving money and respond by saving more money.
Set a Good Example
Children learn by examples and usually follow whatever their parents do. Moreover, learning begins at home and children are considered best learners.
They quickly learn and adopt whatever is happening around their surroundings. Well, as a parent, you can be a source of inspiration for them.
So, let your children see that you too take interest and save money. You can begin by keeping a money saving jar and show your child that you are saving money by putting money in it.
When you regularly put money in the jar, your child will learn that saving money is essential and one should save money regularly. It will inspire your child to save money.
Give your child a piggy bank
You should give your children a piggy bank in which they can deposit their savings on a daily basis. Saving in small amounts will lead to big value. Alternatively, you can also open a bank account for them so that they can save and also earn interest on their saved amount.
By having a piggy bank, your child comes to know how much he or she has saved. When your child puts money in the piggy bank, he or she will inculcate the habit of saving money.
Fix a Weekly Allowance
You can fix a weekly allowance for your children. Whatever they need to buy should come from this allowance. So in a way you are making your children more responsible.
They would understand what amount they can spend and how much they have to save. This would also lead them to come out of the habit of impulsive buying.
Set up Monetary Rewards
You can also go for setting up some monetary rewards for your children in exchange for some service. For example, you can reward them for washing their clothes, cleaning up the dishes, tidying up the house and so on. Thus they earn their saving and merely not get the money from you for saving.
Involve your Child in Budget Preparation
You can teach them or rather discuss with them the monthly family budgeting. Be frank with them so that they become aware of what goes in managing and running a family. This would teach them the importance of budgeting, organizing expenses and saving as well.
Help your Child in setting up Financial Goals
You can also teach them the value of setting financial goals, tracking and noting down the day to day expenses, mentor them to set saving targets for the month and so on.
You can also teach them the importance of comparing prices of items from shops and can show them the benefits of making comparisons in prices of items from various shops when you go out on shopping or buying goods. It will help to make them wise in financial matters.
As a Final step, you can also choose to give the spending power to your children. Give them the freedom to decide how they would like to spend the weekly family entertainment allowance.
This approach would develop in them the capacity for planning, executing and controlling. Simultaneously they would also learn where to spend and how to save.
Thus if you teach your children these simple yet effective techniques to, believe me, your children will learn and would develop the healthy habit of saving money.
So, in reality teaching your children about saving is not at all difficult, on the contrary, it is rather easy and requires a little bit of your mentoring, patience and interest. Of course, all of us do want our children to become responsible citizens of tomorrow. Isn’t it so?