Every parent wants their kids to get the best of education in best of schools. They want them to grow up and pursue a good career with lot of prosperity. Well, during raising children parents often forget to teach their children the financial responsibilities wherein it is important to know how to save money.
You may ignore the fact that your kids should learn how to save money right from their childhood. Still, if you think you missed on teaching them you can follow the ways illustrated in this article to help your kids learn how to save money responsibly at any age.
Discuss about money with your kids and in their presence
If you have not been discussing about money earlier with your kids or even when they are present around you, then you can still start talking about money management in front of them. You can start talking to them about financial matter, savings, negotiations etc to help them understand the importance of saving money for crisis or for the retirement.
Help them understand to make smart decisions. Do not hesitate to speak about money matters with them. You can discuss with them about how to manage money and spend responsibly to avoid falling short of money in need.
Use fake printable money to teach them money matters
In order to support your lessons and make it bit practical you can print some fake money to teach your kids better. You can give them these fake prints to learn how to spend hard earned money wisely.
Tell them the importance of saving money in the bank. You can explain them each and every thing with reasons to make sure they understand the facts better and come up with questions. When they ask questions, you can support your answers with examples which can be from your daily life.
Let them use fake printable money to understand the money transaction well. This will give them the confidence of dealing with money themselves. You can appreciate them for every decision they make regarding money matters.
Pay them for chores
You can help your child learn the value of money and hard work. Ask them to do some chores and pay them for that. You can increase the rate quarterly or yearly to encourage them. Also, let them know that there are certain household tasks that should be done for the family and they should be done as a help and family responsibility and not wages.
Appreciate efforts and teach discipline
While you appreciate their learning, try not to be lenient with them when they fall in short of cash and want to buy something. Do not buy for them and teach them how it feels when you do not have enough money and that is because you haven’t planned your spending properly. Also, teach them that they need to take care of their budget before they want to spend.
Get them into habit of saving money
You can help the younger kids into habit of saving money and ask them to save money in their piggy bank or an envelope. They will be happy to see their money increasing every month. You can assign them chores that suit their age and pay for the same. Tell them to plan out their spending and savings accordingly.
Also, let them know that they won’t be paid extra if they fall in short of cash due to unnecessary spending.
Teach them to divide money to spend, save and donate
You can help your kid learn the importance of charity and why they should donate some portion of money they earned to the needy. Ask them to divide money into 3 portions. They can divide the money to spend, save and donate.
Help them learn the importance of interest rates
If your child is old enough to understand the value of interest rates you can explain them how keeping their money in bank can help them get interest rates and this way they can multiply their money.
Let them know that it is not only about saving money in bank if you are not able to multiply money. Help them understand that saving your money in the right way can help them multiply their money on a regular basis. This is indeed a smart idea.
Keep motivating your kids and discuss how they can save money such as selecting the right utility saving expert. Let them decide on their own. Do not forget to appreciate them for every decision they make and help them learn from each mistake. Do not rush to make them financial experts, go slow and help them learn with each coming day and situation. You will see how kids pick up really fast and enjoy saving money and utilizing it in the right way.