When it comes to matters of how you can build your wealth, saving money should rank at the top of your list. It is vital that you learn how to save money. And that should go for your kids as well. The only way you are going to secure a great financial foundation for your kids is by teaching them. Get your kids to start getting into the habit of saving while they are still young so that they get to see the importance of it at an early age. Kids learn a lot through trial and error, and the same should apply when it comes to saving. Here are some money saving tips that you can use to teach your kids this important lesson.
1. Piggy Bank
Set a goal for your kids to fill their piggy banks with coins and dollars until there is no more room for anything else. Explain to them that the piggy bank is their banks where they can save their money for their future use. And that the more they manage to save, the more their money will grow. You will be astonished at just how much kids can also dedicate themselves to saving especially if you give them the right motivation to do it.
2. Money Talks
Having a conversation with your kids about the importance of saving money should also be a regular occurrence in your home. Talk to them, teach them, and keep reminding them about the benefits of saving money and how they will come to have a brighter life and future using the money that they save now. Children have the ability to understanding money at an early age, so this should not be a difficult task.
3. Be The Role Model
In as much as you want your kids to learn how to save money at an early age, you should also show them that you are doing it. Children learn by examples. So, the most effective way that you are going to get your child to understand and even save money is by saving money yourself. You can have your own piggy bank in the house where you also save your money regularly.
4. Use Real-life Experiences
If you want your child to get the concept of saving money, then using real-life experiences is a great way to go about it. Teach them by examples. Teach them that they have to work for their money. And that money does not just come from a machine (ATM) but that they need to put it there first. Let them know about things like price comparison and inflation. Teach them about credit management and how timely payment of their affects their credit score positively. The sooner they get exposed to these things, the better their financial life will be.
5. Wants And Needs
The earlier your child learns about the difference between the two, the better. Teach your children to understand and distinguish between what they feel they need against what they want. This will help be able to make better financial decisions in the future. So, next time you head out to the mall with your child, and they ask you to get them something; you can ask them if they really need it or want it.
6. Open Up A Bank Account
After your child has successfully filled his/her piggy bank, you can then go with him/her to the bank and open a savings account where you can save the amount. Let your kid count the amount of money that is going to be deposited. This enables them to get more of a physical understanding of the money they have already saved. You can also reinforce the idea of interest to them to motivate them to want to fill their jars again.