All parents want their children to be responsible, and one of the biggest responsibilities in the world is money management. Cultivating money-saving habits is easier when children are young and innocent. That is because once they grow old, it becomes hard to control their money-spending habits. And as we all know, old habits die hard. So, why not help your child understand the value of money from an early age?
1. Buy Your Child a Piggy Bank
Having children own a piggy bank will instill in them, the importance of saving. Give your child dollars and coins so that he could save them up in his money bank. Tell him that this money is for the future. The more money he will save, the more money he will grow. In this way your kid will find saving money as a fun game. Plus, he will make sure that he saves as many coins as possible. Slowly and steadily, your child will develop the habit of saving money.
2. Don’t Let Money be a “Grown-up” Talk
In most households, money is considered to be a taboo subject that needn’t be discussed in front of the children. However, feel free to talk about the salaries, bank accounts, financial matters and property affairs in the presence of your kids. By doing so, you will not only help your child become mature, but they will also understand how money fits into everyday life.
3. Practice What You Preach
You might not know it, but children do what they see their adults doing. Your child might absorb your way of talking, and behavior like a sponge. In no time you will start seeing them as a mini version of yourself. So, plan your budget or write a money diary in the presence of your child. Moreover, let him know why you are doing it. Choosing to go to cheaper stores instead of expensive stores, will eventually help your kid know why you are doing so. Plus, comparing different prices at a grocery stores will be noticed by children, because they can be really sharp observers. It wouldn’t take long for your child to connect the dots.
4. Give Them Fake Money
If your kids are really young, and you think they can’t handle real money, give them fake money. Fake money will give them a chance to learn the various ways to use it. And this will help them prepare for the time when they would actually have to use real cash. The calculation and decisions would prepare them for using real dollars and cents later in life.
5. Don’t Spoil Your Child
One of the major ways parents spoil their children, is by giving them every toy or candy they desire. Parents have this “open-wallet” policy in which they give their child for whatever they ask. It may just be one way to show love, but too much can give your child a feeling of entitlement without understanding what it took to earn the money that was spent. Some children will have no control over their desires or their wallet! Consequently, they will foolishly spend money without thinking twice. Hence, it is important to start on the right foot from day one. And let him know how to save money to buy things they want.
So, this is a wrap on some of the easy-peasy ways to help your child save money responsibly. Trust us, this habit can really relieve your child from some crucial financial stress once they grow up.