9 Money Saving Tips to Teach Your Kids
A lot of us parents would love to give our kids a sound financial education, sadly we are caught in in everyday life and before we know it, these kids are adults with no thoughts or knowledge of how to take a dime and make it grow.
The money saving tips we give these kids don’t have to be formal, done within the confines of a classroom, we can drop a word here, a sentence there, or make them witness a good financial decision we took. We also can start with little financial tips and increase this as they grow.
Kids learn best at a tender age and most times, whatever is taught them at that age become habits that carry into adulthood. Teaching your kids about money is laying a good foundation; it is building the right standing on which they can grow and thrive much later.
Teaching them about money, is teaching them the difference between wants and needs. Sound financial knowledge will also make these kids responsible adults.
You can teach them using real life experiences and what better way than to have them start saving from whatever little money they have. Although not required, a good way to encourage kids to save, is to promise to double whatever they can save. For instance, if they able to save up $300 from their allowances you add another $300 to make it $600, Knowing they stand to earn more will make them strive to save more.
You can also let them watch you as you save or invest and also include them in those moments where your investment yield good return rates so they get to see this as a lifestyle worth emulating.
So if you would like to educate your kids financially, here are some saving money tips you could start with.
Here are Nine Money Saving Tips to Teach Your Kids
- Teach them that money makes for a bad master, but can be a good servant. Being too obsessed with money is one finncial flaw that almost always comes with bad results.
- Teach them that money saved today is money that grows tomorrow. Let them cultivate the habit of saving from an early age, no matter how little what they put aside is.
- Teach them to delay gratification and to save for their goals instead. There will be lots of time for gratification later. Also, teach them that interest earned from money invested is a much better way to get gratification, if they are unable to wait too long.
- Teach them to respect money and to know that it doesn’t just grow on trees; it is earned. Knowing and respecting money at a young age will set them on the right part of trying to work for it.
- Teach them the value of time, services, and money. Let them come to understand these concepts, even if you have to show them the most basic of all three. Let them learn to earn at an early age, but only if they want to and nothing too tasking.
- Teach them never to feel any guilt when they spend money they worked for on what’s important to them.
- Teach them the habit of investing and to know that this is the best way of multiplying your money.
- Teach them to cultivate the habit of spending less than they earn as this will prevent them living from paycheck to paycheck.
- Teach them to diversify when they invest to reduce risks. They should learn never to put all their eggs in one basket. This doesn’t just reduce the risks that sometimes comes with investing, it also brings about the possibility of earning more money as one or more investment might do better than expected.
While these money saving tips may seem simple, they are more than adequate to financially these kids for the future.