Encouraging good saving habits in your children can begin at a young age. Even as adults we don’t always get it right either. There are a few things we can do as parents / guardians to encourage our children to save and understand the value of money. There is no right or wrong way to teach good saving habits to children but we have come up with a few ideas that might help you along the way.
- Needs VS Wants
It seems cliché but have you ever tried explaining to a toddler that they don’t need something that they so desperately want in that moment. As they get older they understand a bit more when you explain that they don’t need it but there are still times where saying no isn’t enough.
Explaining to children the difference between what a need and want is can help for example; having a conversation with them that the things that we need are pretty basic which is clothing, food and shelter. It doesn’t sound like a lot of things but those 3 things come at a cost.
- Pocket Money
Asking your children to do chores around the house so they can get pocket money can teach your children that you can earn money by working and by doing that you can save. It also means you can sit down and enjoy that cup of tea that you have been wanting.
By getting your child to do chores it can also give them an opportunity to save for that cool new toy or new game that they have been wanting, it also teaches them how to be responsible with their money.
- Piggy Bank / Bank Account
Teaching your children the value of money from a young age can help them a lot in the future. Getting a piggy bank and setting goals of a dollar figure to be added to that every week from their pocket money that they worked for and earned.
Setting up a bank account for your child also can help them in the future also so that each time that piggy bank gets full, or that birthday or milestone they get given money they save some and put it away.
These few things mentioned above are something that can be encouraged from a young age that could give them the financial freedom when they are older.