Teach your children to save money

07 February, 2012 02:54:00 Hemantha Ramdhani

Photo ©: dededoes.com

We all know that money can be tight. So it’s important to teach your children to save from a young age so that they’re financially savvy later.

Children aren’t born with “money sense”. They learn about finances through what they see, hear and experience. As parents, we have a strong influence on this.

Teach your children to save when they’re young so that it becomes a habit.

By teaching our children the importance of money and more importantly how to save money, we are giving them the tools they’ll need to deal with their own finances when they’re older.

Children have no idea what things costs

The price of a packet of chips and the price of a Ben 10 Illuminator watch is the same to children. As they get older, they may know what things cost but they still not know value for money.

The value of money and the cost of living

Help your child understand what something costs and whether there is a value to it by explaining how you earn your money and that most of it is used for essentials like food, shelter and clothing.

Children need to have money of their own to learn how to manage it

Kids often develop a very early fascination with money, so they will be very excited to have some of their own. Give your children a set amount as an allowance either weekly or monthly to use as they choose.

An important concept to teach your child is the concept of saving

Of course, don’t let your children buy everything they want immediately even if they have the money. Explain that, by saving money today, we can buy something more expensive tomorrow. Be sure that your kids understand that by going without something now, they may achieve greater satisfaction later.

Let your children earn extra money by helping out around the house

This will help your child appreciate that nothing comes for nothing in life. Remember, the money your child earns in this way is their own, so you must let them decide how they spend it – it’s part of the learning process. They’ll learn from any mistakes they make.

Be sure to praise any successful efforts. Let your child know when he or she is doing a good job in managing his allowance.

Latest Parenting Articles...

Benefits of teaching kids yoga and chess

Raising healthy kids isn’t just about giving them the right food to eat or making...

:: more

Underage drinking and your teen

Getting children to wash their hands

Parenting the online generation

Breastfeeding 101 for new moms

Author info: Hemantha Ramdhani

Hemantha Ramdhani is a vibrant writer, blogger and career woman on the go! A single mum who enjoys the challenges of creativity, she aims to empower, inspire and motivate women to new levels of achievement. Her journey epitomises the lives of many single mothers who have overcome socio-economic, educational and personal challenges to become a community advocate, mentor and role model.

Rate this article

4.50