As part of a healthy upbringing, it is essential for parents to instill in their kids the right lifestyle habits. While there are numerous things to be included in this responsibility, teaching them the value of money is one. Children should learn to value earnings as well as the importance of spending money wisely. Parents can take proactive measures in orienting their kids towards investing early on and play a pivotal role in driving their financial management skills as adults.
Learning the concept of money, savings and investments will prove to be very beneficial for your children as they grow. Here are some tips that you can use to motivate your child towards saving money in their growth years:
- Encourage your kids to write down their goals on a journal. This will help them distinguish between the amount of money that they must save and the money that they have available to spend. Having a goal stated on a paper makes it more tangible. It will let your kids keep track of their savings and also know how far they are from achieving their goal.
- Sit you children down and explain to them the importance of saving money. Help them understand the importance it holds and the ways in which it will impact their lives over the long term. Additionally, encourage them to ask you any questions that they may have about money and ensure that you can answer them right away.
- Open a kids saving account and push your child to make deposits regularly. Taking them to the physical bank branch and involving them in the procedure of creating the children’s bank account will greatly motivate them.
- Teach your children to work for their money allowance. Every time they do a house chore such as clean their room, tidy their book shelves or do a good deed, award them with a small amount of money. Earning the money will help in instilling in them the idea that money comes when earned and must be spent wisely.
- Give your kids a piggy bank and tell them that they must add coins until full. When the piggy bank is full, you can help them use the money to open a kids saving account with some portion and buy them gifts with the rest. Showing them the impact of their piggy bank savings will keep them motivated towards making further savings.
Children do not learn money-saving habits overnight. It is an ongoing process and requires conscious efforts by parents. Consistency and patience in guiding them will go a long way.