Many experts say that it is never too early to teach a child about spending and saving habits. True enough, a lot of psychologists really encourage inculcating in children the habits of proper spending as soon as they learn how to count money, or even earlier.
That being said, here are tips on how to teach your child to save money so he can become smarter with his spending habits in the future.
Using Various Jars
Each jar would represent an item that your child wants to buy. Your child would fill it up little by little similar to a piggy bank. The picture on the jar would continuously motivate your child to save money because he can always see his dream toy or object.
Have a goal chart every week. Say for example that the child’s goal is to be able to save 20 dollars by Friday and it is met in a timely manner, offer him a reward or compensation. The compensation does not need to be in money form. It could be in the form of food, a trinket or what not.
Set a Good Example
Your child will easily pick up commendable spending habits especially if you do it yourself. Children, more often than not, learn from example. It is very important that you, as parents, practice good spending habits as well. One good way to communicate this with children is by avoiding eating out too much. Explain to them that home cooking is cheaper, safer and healthier.
Teach Them to Earn
As early as 5 years old, a child is already capable to make a few pennies here and there. You can go for the good old classic lemonade stand in your front porch every hot summer day. Or you could teach them to walk the dog by 10 years of age or sell their used toys and clothes as well. Help them in raising a capital and computing for the price of their goods to make sure that they do really profit from their efforts.
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Open a Bank Account
95% of banks all over the world have a separate kiddie account program for children who want to save their money. You don’t need big cash as a maintaining balance. It can serve as the child’s wallet to help them swerve away from temptation whenever they feel like spending. Plus, it would be a be great if your child sees a very nicely printed bank book.
Teach Them how to Thrift Shop
Many kids nowadays have a habit of constantly asking their parents for things like clothes, gadgets, toys and the like. If children knew how expensive these things were, then they would not be acting like such brats. It’s important to tag along your kids whenever you buy stuff for them so they can see how expensive and costly a single pair of shoe could cost. Another benefit to this method is that children will learn how to take care of their things better because they now know how hard mommy and daddy worked just to purchase it.
Let Them Make Decisions and Learn from Consequences
There will be times that your child’s saving habits could be altered because of a sudden urge to buy. This kind of impulse is very common in children. If they have the urge, let them go through it so they can learn how much it hurts to have spent your money on something that you don’t really need anyway or something that they think is worth it but is not after all.
To spend or to save is a daily dilemma for a lot of people! Make it easier for your kids by teaching them to save as early as now. Start today!