Teaching Your Kids to Save Money

Most of the younger generation of today does not know how to responsibly earn and spend their money. Their orientation is set to being carefree and full of fun and enjoyment because they have the support of their family. They have to start understanding the importance of proper investment and saving. Your role as a parent is to make them see the clear path of being responsible in terms of spending and money.

How to make them see the importance of money?

1 – Educate them about how important money is in early childhood.

It is easier to teach them again and again during childhood when they have not developed spending habits yet. Be consistent in all your teaching and do not deviate from your beliefs.

2 – Explain to your kids the real value of money.

Of course, there are more important things that you should teach them. But, the importance of money is something you should not ignore. Remember, there are unfortunate ones outside your home who do not have to be taught about the importance of money because they do not have the money to spend in the first place.

3 – Given them enough allowances.

If they want something that is way beyond their allowances, they should work hard to get it. Do not give in to their money wishes. Kids can be quite charming when they want something but you need to be firm with what you teach and consistently remind them of their responsibilities. Teach them how to save using their allowances only.

4 – Let them work

Perhaps, it is only about washing dishes or laundry. You can compensate their hard work so that they will know how to earn what they deserve. Encourage them to learn how to earn their money the hard way but do not forget about their needs as well. If you talk about their wants, it’s another different story.

5 – Give them piggybanks

Give them piggybanks instead of money right away. It will make them realize how important saving money is if they want something. If they want to have new iPods then wouldn’t it be better if they earn their way to get it? Let them know the joy of spending the money that they saved.

However, you need to know that teaching them the importance of money is something that can never learned overnight. You have to show them and teach them over and over again. Be patient during times that they could not understand what you teach. They will but let them learn it on their own pace.