Saving is one such habit – the earlier you inculcate it, the better it is for you. And when it comes to kids, the moment they begin to understand numbers, you’re free to start teaching them about money and savings. This will make sure your kids learn about this oh-so-important habit of saving money. Here are a few ideas how you can get your kids to understand the whole concept of saving. Read on:
- A see-through piggy bank:
Why get an opaque piggy bank through which you cannot see anything when you have the option of getting your kids a huge clear jar? This transparent jar will motivate your kids to keep saving until it slowly fills up. Also, they won’t have the urge to keep opening the jar-piggy bank to count the money they’ve saved because the money will be right in front of their eyes!
- Teach them the value of money:
Sometimes, actions speak louder than words – so instead of lecturing your little ones about the importance of saving money and using it sparingly, show them how it works. So when they demand for something unreasonable, tell them to draw money from their jar and buy it with the money they’ve saved. The next time when you’re out shopping, watch how they will insist on checking the price before actually demanding something. This may not happen quickly, but over a period of time when they realise that the money they spent on unnecessary stuff could’ve been saved to buy something better – that’s when the value will kick in.
- Pay them for chores:
Assign your kids chores – according to their age, the type of chores will of course vary. And every chore done well will fetch them a small allowance. This will not only get your kids to chip in the household work but also teach them that to get money; you got to work. Watch how happily they’ll clean up the garden, or chop pitch in to help in the kitchen when they know they’re getting their allowances for all the effort!
- Teach them the opportunity cost concept:
Well, not in the complicated manner of course – instead you can explain to them that if they buy the expensive remote control car, they won’t have enough money to purchase the sports shoes they’ve wanted for football practice! This way, your kids will learn to weigh between options and choose what they actually need over what they buy randomly.
- A bank account works wonders:
As your child grows up, setting up a bank account for them is just the right thing to do. Sign them up for a minimal savings plan which will ensure they put in a regular amount of money every month, or quarterly in the bank. If they’re falling short of some mount, let them know you’re always there – but also, allow them to make an effort to save it up all by themselves.
- Bye loans, hi savings:
Instead of signing up your kid for a student loan, make sure you have this talk well in advance with your child as he is growing up. This will make him feel responsible – tell him that a loan is a big no and it’s best he starts saving up for college as soon as he can. Internships, summer jobs are pretty cool and make sure a part of these earnings goes into the college fund.