Many children aren’t able to comprehend the value of earning, spending, or saving money. Often this is because they just haven’t been exposed to the concept yet. But fortunately, as a parent, there is something that you can do about it.
If you want to have any influence over how your children handle their money, in the coming years, it’s important that you teach your children how to save money. This has the potential to prepare them to value money, as they progress into adulthood. Here are a few suggestions on how to teach your kids to save money:
1. The Value of Saving Money
In order for your children to really appreciate the concept of saving money you’ve got to educate them on why it’s important to save money. The best time to teach your children this is after they’ve learned how to add, subtract, and count money. But if your children are already past that stage it’s not too late. You just need to be consistent and explain to them, in very plain terms, what it means to save money and how saving or not saving money can impact their lives.
2. How to Earn Money
Another important lesson that you should share with your children is the idea that if you want to earn money you have to work. This is something that you can start at home. You can have a discussion with them and agree upon some nominal amount that they’ll earn each time they clean their rooms, do the dishes or feed their pets. This idea of earning money, in very small amounts, will make them feel that their allowance is something they’ve worked really hard for and that they should therefore spend it wisely.
3. The Piggy Bank
Now that they understand the value of money and are earning money on their own you should teach them how to save money. You can do this by getting them a piggy bank where they can store their coins and currency. Oftentimes, helping your child set a goal to save to can teach them the worth of saving month. Start small for the first goal and for the next goal increase the value. Another thing that you can do, if your children are older, is open a bank account for them and let them deposit the cash from their allowance. Then you can periodically show them how much they’ve saved to help them stay motivated.
The value of money and how to save is not something kids can learn in one sitting. So just remember to be patient when you’re teaching them about money and over time the idea of saving money will be second nature to them.
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