Teach Your Kids How To Save Money – Incorporating Financial Lessons

Learning how to save money is a skill that anyone can learn in just about any age. But yes, at the same time, it is also true that the younger the lessons start off, the better the children will be by the time they leave their nest. Majority of the parents think that talking to their kids about money is the most awkward thing that but it’s just as vital to talk to them about money as it is to talk to them about their life and their decisions. If you still look back at your younger years and wish you could have changed some things, then it’s the right time to impart the right financial education to your kids to make sure they don’t follow your footsteps. Here are some fun ways in which you can teach your children to be savers in the future.

  1. Utilize different jars: Are you familiar with the envelope budgeting system for your own money? This can also be a good way to teach your children about saving. On the jars, make your children draw the picture of what he wants. You may also take some time to make them understand that some items may take time to save for. For instance, short term savings jar may have a picture of a toy and the long term may have a picture of a trip to Disneyland. Teach him how to set aside money into that jar.
  2. Create a savings goal chart: Once you know the reason behind your child’s saving goal, figure out the number of weeks that he might take. You can then make a savings chart by allocating the week’s allowance after its set aside. If he wants a Transformer toy, make him draw that on a chart. This way he could soon see himself move closer to the goal of saving money.
  3. Offer him good and nice rewards for saving: Everyone needs motivation to achieve a goal and it is more applicable for children. Why not consider rewarding your children for the little bit of savings that he does through his earnest efforts? Nowadays, even credit unions offer t-shirts and other prizes and you can offer such prizes to your children. For instance, if your kid doesn’t spend money for a certain period of time, you can give him a small treat.
  4. Set a good example as parents: One of the finest things that you can do is to let your child see the way you save money and thereby learn how to do the same. Most kids follow their parents and hence if you can set a good example for them, they can also practice the same skills and grow up to be financially responsible children. Incorporate the best money lessons into your kid by being monetarily responsible.

So, if you’re a confused parent who has been wondering about the ways in which it is possible to teach saving lessons to your kid, take into account the above mentioned tips. Start teaching your children now so that they can master the art of saving by the time they grow up.

Jimmy Simond is a founder of Personalfinancetricks.com, he share his immense knowledge of finance in this blog.