It is back to school for your kids, one of the best things you can do for your child is to teach him/her to save, as it will help them survive throughout the term, without having to bank too much on you as a parent. It will also prevent them begging or in the worst scenario, stealing.
Saving money is integral in building a strong financial foundation . Saving is not something that is part of the school curriculum for a child to be taught, so the responsibility falls on the parents to teach their kids. Teaching kids about money are one of the most important things you can do for your child, as a responsible parent. With uncertain economic times ahead, and a growing need to be both cautious and wise with money – your child will need these lessons at a young age.Reasons to Teach your Kids Savings
- Understand the value of money: When teaching kids about money, they will learn where it comes from, how it can be spent and most importantly the value that it has in the life of your family.
- Appreciation for saving: A monitored family allowance will help your child learn that saving is an integral part of being financially secure. When you make Shola, age 8, save up for his own PlayStation – he’ll understand its value and appreciate it more.
- Enhances decision-making ability : When your child has to consider the consequences of their actions with money, it develops their decision-making skills; more reason we can say teaching your child to save is crucial to your child’s early education
- The meaning of financial responsibility: Entrusting your child with money and allowing them to handle how they spend it for themselves – is a great way to foster a responsible attitude in your kid.
- They can make mistakes now instead of later: Teaching kids about money will force them to make mistakes now rather than later – with cash, over spending, credit, and savings. These lessons will teach them to be savvier with their money, as they get older.
- Money management for kids’ means that they will be exposed to the real cost of items, and will have a better understanding of budgeting and spending in a money-conscious world.
- Prevents impulse spending: Impulse spending is one of the biggest problems with adults today , which is why a lot of people owe. Teaching kids about money actively prevent impulse spending that begins in the teen years and continues into adulthood.
- Improves their math skills : Exposing them to saving early, the act of collecting money, separating what they are going to be using the money for, continuous adding up of the money, will make them smarter and in a way give them more of a practical experience for solving maths, that their peer won’t have.
- Teaches them the value of goal setting: This gives them a practical, real world commodity to work with, to motivate and enhance goal-setting lessons. Instilling motivation and work ethic into your child is far easier when there is money involved.
- Improves their chances of being financially secure later in life: Finally, all lessons about money are important for your child – as they will ensure that your kid knows how to treat money as they grow up. This is an essential life skill for them to continuously imbibe. Teaching your kids at a young age
Explain to your child that money is earned and is relative to the value that people give . An ideal time to begin teaching your child about the basics of money is when they first begin to notice it. To a young child, money comes from Mum and Dad’s pockets or purse . It’s understandable, therefore, for kids to assume that money is readily available whenever it’s needed.
The most important thing is to make it a fun activity for the child and also a learning process, the spending, sharing, saving method can be used. It starts with three simple questions
- What is something worth saving your money for and not spending it right now?
- What is something you want to spend your money on right now?
- Who is someone you love and want to share your money with, or do you want to help some helpless kids your age?
Parents need to set a good example for their kids too, that’s what they will see and follow. You can’t be swimming in debt because you don’t save and expect your child to save, all because you said so. Get them a piggy bank or a jar to start saving, and you will see the joy in them when they finally save up to get what they wanted, not spend all the money gotten as gifts on sweets or biscuits.