Saving Tips: 5 Ways to Teach Your Child How to Save
Most saving tips taught to kids carries into adulthood.
Last holidays, my nephews were over at my place and while watching a movie featuring a very rich and generous young man, we had a small conversation.
The younger one, who is eight and already knows a thing or two about money and saving tips, sadly has what I would term a comical view about it.
He saw the rich man in the movie spending lavishly on women and had a ‘better’ idea of how he’d have spent all that money instead.
His idea? He would buy one thousand cookies, ice creams, and fruit juice packs and live grand by eating these all alone.
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While I laughed at his innocence, it also got me thinking that he needs to learn about money and the fact that not every cent is to be spent, especially on cookies or sweets.
A lot of kids are quite intelligent and you’d be amazed at how fast they’d learn if you’re willing to teach and guide them on the right money habits to adopt.
If you would like to teach your kids how to save, here are five saving tips you can start with.
Make Use of a Piggy Bank
I got to know about piggy banks when I was just 15 and saving this way has been a habit for me. In my case what I saw were those square wooden boxes we call “kolo” and I was instantly fascinated by them.
I remember saving with one of these then, happy to put a notes here and a few there there and knowing these were all adding up. You can imagine my joy when the piggy bank was broken a few months later to reveal a “rich” little me. I was the new ‘Bill Gate’ in town and walked tall for a week.
We can teach our kids to adopt this savings method. It’s pretty easy and you can start immediately.
However, because these are still kids, it’s usually advisable to make them save just a portion of their allowance and not the whole, that way they don’t get to see saving as a stringent exercise or in a bad light.
Open a Savings Account
You can walk into any bank of your choice and request to open a savings account for kids.
My bank runs a programme where a marketer is permanently stationed at the ATM booth. He profiles you when you come to make withdrawals and calmly approaches you to introduce any of the several saving plans for kids to you and I remember opening a savings account for my daughter this way.
Those little money our kids get gifted by strangers which we see as our very own dividend of motherhood, can be put to judicious use for these kids.
Reward Them for Saving
Since the very first instinct of these kids is to spend every cent they get, we should reward them if they take the initiative to save on their own.
This reward can be in any form; monetary or otherwise. The idea is to create a good aura around saving so they are more encouraged to save.
Live by Example
This is without a doubt, the best money saving habit to teach your kids. Kids learn a lot by watching, you’d be amazed just how much. If you’re constantly going on about saving; how this habit makes them good little boys or girls but they don’t see you doing the same, they’ll never be tempted to take you serious.
You should set the pace by saving and making them aware every time you do so.
You can get this act going by having a piggy bank of your own and dropping money into it often in their presence.
Make it a fun time when you all drop money into your piggy banks at the same time and then go on to have some ice cream or some other treat and they will come to love saving time with mommy.
Use Their Money Judiciously
I heard a child complain once about how his mommy ‘borrowed’ his entire savings from his piggy bank and never paid back.
Whenever he reminded her, she would turn around to remind him of how she carried him for nine months in pains, or the fact he was being fed, clothed and housed for free.
Needless to say, this put paid to his zeal for saving.
Your kids savings should be put to good use. If and when you are ready to break their piggy bank, be sure to do it in their presence and make a grand gesture counting the accumulated earning and praising them for the discipline to save such a ‘huge’ amount.
Every kid would feel good and motivated about this.
You can then go ahead to get them something sensible, but which would also appeal to a child that age, if that is what you or they want or transfer it into their savings account.
Tags: Money tips, money habits, money saving habits, money saving tips, money saving ideas, money tips