“A penny saved is a penny earned”.
Saving money is one of the most essential characteristic of building a secure financial base –as our kids grow, so do the rupee value. Given how important financial expertise is to handle different stages in life it’s surprising that schools don’t teach children about money. Thus, we as parents should take the responsibility to make saving fun for our children from a young age. The earlier you start teaching them to save money, the better off they’ll be. Surviving on little money that is given, making a plan, these are some things that need to be rooted. The best way to teach kids to start managing money is to give them some.
For example, in college, kids will be tempted to take out student loans. At work, they'll be presented with a lot of credit card offers. By introducing strong financial practices early, your child will be groomed to overcome familiar challenges as they get closer to adulthood. As a parent, it's up to you to ensure he's prepared to face financial decisions sensibly. Learning how to count money in the classroom is very different from getting real pocket money, opening a savings account, and creating a budget to help your kids buy the things they want.
If you are a parent, here are few ways to teach your children about saving money:
Start with a Saving Jar
When your kids crave for the latest toy or an action hero, tell them they will have to save up for it. You can make saving money an interesting task with colourful containers or jars. Give them a saving jar for their preferred purchase and give them small pocket money each week and encourage the new hobby. For example, if you plan to give your child hundred rupees a week, give it to them in different denominations. They can save all their cash for one purchase, or they can save it for their next goal.
Use Piggy Banks
The piggy bank is a great idea. Tell your kids that the objective is to fill up the piggy bank with coins and rupees until there is no room. Explain to them that the piggy banks are for saving money for the future and that the more they save, the more toys they get to buy. Take him shopping and let him pay the cashier himself. He'll never forget how good it feels to work toward a goal and be rewarded in the end.
Track their savings
Encourage them to track their saving and spending. Every time money is saved draw a line showing how much was saved. If your children get awards in cash tell them to write it down and add them up at the end of the week. Being a better saver means knowing how to calculate them as well.
Lead By Example
The best ways to teach your child about saving money is to save money yourself, since children learn by example. Have your own piggy bank that you put money in regularly. Put it in a jar while your child is watching and tell him or her it’s your savings. This shows that saving is “normal” since, children want to be like their parents, seeing you do it will motivate them to save.
Make It a Game
Kids are generally drawn to games and competition, so make saving money a game. Challenge them to save a specific amount each month. If they do it, they win an advantage from you. If they don't, they don't get any benefit. Example – for chores or random jobs, like cleaning around the house, babysitting, keeping the room clean and more. You can also add other bonus, like going to a movie or going to a restaurant, buying new shoes — whatever makes your kid motivated to win.
Monopoly is a popular board game that can be a great way to introduce financial ideas and teach children how to balance spending and saving both in a fun and interactive way. Kids imagine money by seeing how much cash they have. These games focus on counting, making decisions and an introduction to the concept of investments and long-term payoffs. Monopoly does have some valuable lessons to teach –keep cash on hand intelligently, be patient, focus on cash flows, and pay attention to price.
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