We needn’t stress on the importance of training your kids in money management, because every parent understands how important and fruitful this particular habit can be.
And if you’re keen on making your kid wiser in terms of money and finances, you need to begin teaching them the skill of saving money as early as possible.Â Not only will it help your kids in their future lives, but it will also help you in saving your hard earned money from getting squandered by your kids. There are small things you can do to introduce the habit of saving money in your kids.
Fix an allowance
That’s the number one technique to get the kids to understand the importance of money and to encourage them to save money. Fix some weekly allowance for your kids, and provide them with piggybanks, and make it clear that they have to manage their weekly expenses within that allowance.
Encourage them to set a certain percentage of that allowance as saving that can go into their piggybanks, from which they can pull out money only on special occasions. Let the kids understand that the money that they are saving today will come handy when they need extra cash a few weeks down the line, say when they want to buy something new for Christmas.
Excited them how savings can be rewarding
It happens very often that the kid asks for something and you get the child whatever he/she wants. Now that’s one habit you need to control, don’t let your child have whatever he asks for, right away.
Say you kid wants a new skate board that’s available for $30,Â instead of buying it for him tell you kid that you cannot spare out that amount this week so you will be giving him $10 extra, added to his weekly allowance, each week for the next three weeks.
And make it clear that the kid is to keep this money aside till they have collected full payment for the skate board. This way the kid will learn to resist the temptation to spend even when he has money in his pocket. And that’s where he will begin realizing the importance of saving money.