Teaching kids the importance of saving money
The most important thing at the beginning is to make saving fun. Plus, the earlier you start teaching your children to save money, the better off they’ll be. Even toddlers can do it, but you have to teach this concept in a way they’ll understand. Consider rewarding your child for saving his or her money. Much like my credit union, which offers T-shirts and other prizes, you can offer prizes to your children.
For example, if your child doesn’t spend any money for a certain amount of time, provide a small reward or treat. You can also make the prizes better the longer your child saves. One of the best things you can do is let your child see that you save money too. Put money in a jar while your child is watching and tell him or her it’s your savings jar. This will show your child that saving is “normal.” Plus, since younger children want to be like their parents, seeing you do, it will provide them with many lessons that further inspire them to save. Have an older child write out a wish list of things he or she wants to spend money on and prioritize that list. It gives the child a motivation to save money.
Teaching your children how to save is an important step to prepare them for financial responsibility and a secure future. Help your children to understand the difference between 'needs', 'wants' and 'wishes'. Start by helping them decide what's most important to them.
The benefits of teaching kids to save at a young age:
One, they slowly learn everything has a value. They will learn value for money in other words.
Second thing, they can make mistakes now instead of later.
Third, it will instill the thoughts of goal setting. It will help them to know the real world when they handle money to reach their goals.
Then most importantly, money is always related to hard work and discipline. This will show them nothing is easily available or accessible, all they need to do is to thrive and work towards the goal to earn it.
But it won’t go very far if you don’t “practice what you preach” and save yourself for the future. Whether we like it or not, most of us take after our parents and emulate the habits we observed in them during childhood. In other words, you need to act how you want your children to act when they grow up.
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