Early Money-Saving Lessons Parents Can Teach Kids
As a parent, you want to raise your kid to understand the value of money and learn how to save for the future. You want your child to be financially independent as an adult, and teaching them money-saving lessons early in life will help them learn and practice healthy financial habits.
Follow these tips and teach your kids money lessons early in life.
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Explain to them where money comes from
Most young kids don’t understand where money really comes from. When they see how an ATM dispenses money, they may just think that you can always get money from the machine or the bank.
Let them know that you need to work hard to earn money and that a bank is just a place that keeps their money safe. Have them understand that money can and does run out.
Don’t just succumb to your child’s charm whenever they ask you to buy them a toy. Explain to them how it takes money to be able to buy toys and items.
Make them wait and save their allowance to buy it. This will teach them to work hard for the things they want.
Curbing their impulses also teaches them patience.
Reward them for special chores
You don’t have to pay your child for daily chores that they should be doing on a regular basis such as cleaning their rooms, helping with the dishes, setting up the table, or doing their homework.
But, if they initiate doing special tasks like washing the car or mowing the lawn, you can give them a reward or cash incentive that they can use to buy what they want.
Create a grocery list together
Budgeting is something you can teach your kid even at an early age such as by asking them to help you create a grocery list.
If they already know how to read and write, then let them write things down. If you have a very young child, you can ask them to check the cupboards and tell you the items you need to buy.
Bring them with you to the grocery store, and don’t let them just put items in the cart that aren’t on the list. This will teach them to create a budget and stick to it.
Ask them to write a wish list
Most kids have toys and items they like that they either saw in a store or online. They may have asked you to buy them in the past, but you said no.
Ask them to create a wish list of ten items they really want. Once their list is finalized, you can have them post it on their bedroom wall or the fridge where they can always see it.
This will serve as an inspiration for them to save and work hard for what they want. Once they’ve saved up enough money from their allowance or special chores, go with them to buy it.
Give them a piggy bank
Having a piggy bank is a fun and easy way to teach your child about the concept of saving and spending money.
Ask your child to put a portion of their allowance to their piggy bank. Once it’s full, help your child buy an item from their wish list. Show them how to hunt for bargain deals or wait for discounts.
Have them donate a portion of their savings to charity
The concept of sharing and helping others is another important lesson that children should learn. Talk to them about the different charities and what they do, and help them pick a charity or foundation that they want to help.
The money that they saved can be used to help other people or animals, rather than just for buying things.
Every parent has their own way to teach their kids about money matters. If there are any creative ways that you practice to teach your children about money, please share them with us in the comments section below.
About the Author:
Carol Soriano is a consultant for PawnHero.ph, the very first online pawnshop in the Philippines. A writer at heart and a social media enthusiast, she finds personal finance, investment and money matters interesting topics.