Why do we need to teach our kids the concept of saving and to be money-wise? What are the impacts of teaching our kids the value of saving?
The Concept of Saving
It’s never too early to teach a child the value of saving. Like any good habit, this will establish a positive attitude that you, as a parent can instill to them while they’re still young. And this positive outlook will influence them how to be financially independent while they are growing up.
How will you explain to your kids to let them appreciate and grasp the concept of money and saving? How will you explain that money is a product of hard work and dedication?
How and Where To Begin
For starters, get your kids a piggy bank where they can save coins for something they want. A transparent piggy bank is advisable so they would see how much money they’re saving per day. Or you could help them make one from old bottles or boxes and let them decorate it so they’ll be thrilled and excited to use and put coins on it.
For money to be earned, give your children a small task on hand and let them know how much you are going to pay once done. In that way, they would know that money isn’t just easy to get and that they must have to work for it.
Also give them some change every day to put on their piggy banks. Once their piggy bank is full, let them be the one to open it and count how much they save for the duration of time and suggest some options on what to do with their savings like taking them to the store to purchase something the want.
The store may offer them a variety of stuffs to choose from – ranging from the cheapest to the most expensive one. Once they chose something that falls above their earnings, gently explain to them about saving more for those things that have a greater value.
When you already established the concept of saving process, begin setting some short term goals with them and pinning it on wall calendars or corkboards to remind them of their plan. In that way, they would really pursue to save more to get their goals.
Teaching Your Kids How to Budget
So school has started and kids expect a few coins everyday to buy for food or for some miscellaneous school expenses. Do we need to let our kids handle school allowance budgeting?
Teaching kids to be money-wise is not only about saving money on piggy banks. Sooner or later, they will soon go to school and be given a fair allowance every day.
Help them make a chart to pinpoint their expenses for a day like food and extra things. Then give them a reasonable amount at the start of the week and help them budget until it will reach the weekend.
Learning how to manage allowance budgets can help a child know how to handle tight budgeting later on especially for their school projects and books. Let them experience once in awhile without guidance and see if they could come up with better tactics. Also expect them to commit mistakes once in awhile. Mistakes will give them good money lessons for life especially when they already learn how to get their own money.
The Essence of Being Money-Wise
Everyone must learn that saving money for future use is very important. Nowadays, you just can’t run to people and borrow from them anytime. You just can’t expect that they have money to lend you at all times.
Be a role model to your kids. Show them that you also do what you teach them about the value of saving. Let them be involved on the process about how you are going to pay for something like small bills around the house.
Examine and make changes when you know that what you are spending is already beyond your means. Exercising good financial judgment can influence your earnings and your money habits that could benefit the whole family.
Make it as a goal to budget your expenses so you can still have enough to enjoy and save for future use. When you teach these to your kids, you are not just teaching them how to live for today but for them how to live independently later on. You are also preparing them on a journey called “life”.