Taking the time to teach your children about money is probably one of the best investments you will ever make. After all, you try your best to secure a sound financial future for them; equipping your children with the skills to do likewise goes one step further.
It’s never too soon to teach your kids how to save! In fact, the sooner you teach them how to save the better they will be at learning how to manage their money in the future. If they start early saving, they will understand the value of money and how much can be accumulated over time by saving.
1. Give your child an allowance that will provide your child with money that they can manage. Encourage your child to save at least half of their allowance.
2. Show your kid how much interest they can earn over time on their money when they save it! Especially the power of compound interest.
3. By saving money today, your kids would have money saved, for a future purchase they might want to make.
4. Make saving fun for your kid. Have your child put their savings in a piggy bank or jar so they can watch their money grow.
5. Open a bank account for your kid and let them deposit money from their allowance or other monies received into their bank account.
6. Show your child how to spend wisely. A great way to teach your children the concept of living within their means is to tell them that they can only spend after they have saved.
So, it seems easy, It really is! Get your kids into the habit of saving today, so they will learn how to manage their finances now and in the future.
You say this is all good information, however, you’re unable to give your kids an allowance because you just don’t have enough money. What should I do, I really want my child to learn how to save. Don’t fret, they can still save! You can have them save by collecting bottles and cans to earn money so they can start saving. No matter, how much money your kids earn, every amount adds up!