How to Teach Children to Save Money
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The Benefits of Teaching Your Children about saving Money
There are several benefits to teaching our children about money, for us and them. Committing to do this, we should look at the way we ourselves behave about money matters. If we continuously spend without saving or pay small attention to what’s coming in and out of our bank account, we are not going to be in a position to set a better example. That’s not to say we cannot, it just means our kids learn by watching us.
If we can get to grips with a few basic info to pass over to our children it enables us to look at the way we manage money ourselves and work to improve that, thus providing a good example for our children to follow.
As with anything, our children learn their behavior by what goes on around them. As parents, we effect heavily on this. Family, School, friends, and other environments they’re open to will affect the way they learn about money too. If we’re consistently giving them positive messages about money, this will become their normal.
To give you an example of this, most of us can likely relate to being told certain things about money when growing up. Being kids, you will take things literally and these things become your beliefs about money. For instance, imagine you’re told each day that there isn’t enough money, money does not grow on trees, money is the root of all evil, as well as money, is difficult to come by. As kids, the messages we are given around money will most frequently shape our beliefs and behaviors around money as we grow into adults.
What to Teach, How, and When?
If you were lucky then your parents will have provided you with money education. How they handled it; how they spent and how they saved it. But money looks to be a taboo subject in several families. If you are struggling you do not want to worry about the kids. If you are financially wealthy, you do not want your children to become spoiled. You cannot win. But kids must learn about money so let us pull up our adult pants and dive into the important money lessons you can teach your children.
Ways to save money
Here are some ways to teach your kids to save money.
Lead by Example
As a parent, you’re the person your kids look up to for everything. They observe how you talk to people, how you treat people as well as they even notice how you handle money. It is your responsibility for teaching your children the value of money and more significantly how to take care of it. Sometimes, it is simple to forget they’re watching what you are doing.
For instance, if you are at the grocery store and you are comparing prices of products. They see that. They start to interpret what you are trying to do. Take the time to pause at that moment and share what you are trying to do. Teach them at the moment so they can see how saving money may be applied in real life. Set the best example and set the kids up for financial peace in the future.
That is right. Board games can help kids learn about saving money and it is a fun activity at the same time. For instance, a Monopoly will do a better job of teaching money value, the reasons to save it, and the possible opportunities you can get if you save money. The game teaches you to make crucial decisions with money and what the outcome of those decisions will be.
Create a list of goals
Sit down with your kid and find out what type of goals they have. Write a list and see what they need most. Teach them how to prioritize certain things. For instance, if they purchase a new toy now, then they will not have the money to buy the shoes they have wanted.
Help them weigh the prices, the advantages or disadvantages, and make calculated decisions. Teach your kids to write down that specific goal and tell them how saving money can help them to get it. You can place the list on their wall and beside their bed, so they know they’re working towards a goal.
Fill a Savings Jar
The great old piggy bank. The most popular way children save money. Each time they get money, teach them to put a portion away as well as place it in the Savings Jar. If you get a clear jar, it is easy for your kids to see the money build up which can help motivate them to keep saving.
When you give your kid their allowance for the week instead of giving them $5.00, give them 5x $1.00 bills so they can instantly put money in their jar.
Open a Bank Account
Once the Savings Jar is complete, accompany your kid to the bank. You can open a bank account for the children based on their ages. There are many bank accounts you can open precisely for children. Commonwealth Bank has four different kinds of accounts: teens, children, students, and young adults.
Note: Regardless of our own financial conditions, if we’re to bring up kids who are able to live a full and happy life, it is important we give them the tools to manage and understand money.
The quote that money cannot buy happiness has somewhat truth, but our full planet is revolving about its exchange. what money can or cannot buy, impacts our happiness.Child