Teaching Kids to Save Money
Teaching Kids to Save Money
Teaching kids to save money are sometimes difficult as most kids do not understand the value of earning and spending money. They have not been taught that investing is necessary even if they are still students. As parents, you play a crucial role in teaching kids to save money.
You should be able to teach your kids to save money. They should be able to understand the concept of money and investment as early as childhood. This will prepare them to learn money management, as they grow older.
Here are some tips on teaching kids to save money:
1. Your children should be educated of the meaning of money. Once your children have learned how to count, that is the perfect time for you teach them the real meaning of money. You should be consistent and explain to them in simple ways and do this frequently so that they may be able to remember what you taught them.
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- Always explain to them the value of saving money (using a piggy bank is a great start). Make them understand its importance and how it will impact their life. It is important that you listen to questions from them about money and you should be able to answer them right away.
- When giving them their allowances. You need to give them their allowances in different denominations. Then you can encourage them that they should keep a certain amounts for the future (save in piggy bank) older children or teens you should look into a student checking/savings account depending on age and maturity. You can motivate them to do this by telling them that the money can be saved and they can buy new pair of shoes or the toys they want once they are able to save. Teaching kids to save money should also include 10% tithes for your church, at least 20%-30% savings (my kids personally save 50% then 10% tithes then 40% for spending) then the other 60%-70% save for their purchase. These are just suggestions please modify for what you feel is best for your kids.
- You can also teach them to work for money. You can start this at your own home. You can pay them fifty cents to one dollar every time they clean their rooms, do the dishes or feed their pets (in my home these are for the younger kids. these are NOT pay chores for older kids these a being part of a family) use your judgment . Pay chores in my home are the extra going above the normal like helping with younger kids, cleaning out refrigerator, reorganizing kitchen cabinets and pantry, cutting grass and anything else along those lines. This concept of earning little money will make them think that money is something they have worked for and should be spent wisely.
Money and saving is not something that is learned by kids in one sitting. You should be patient in teaching them and relating the value of money in all of their activities. Children will learn this easily if you are patient and consistent in guiding them and encouraging them in this endeavor.