We are living in difficult financial times, so one of the most important lessons for your children to learn is how to put money aside for a rainy day or for unexpected situations that may be around the corner. It can be tough to get children motivated by saving money, so we’ve come up with some great ways to get them involved:
1. Start them young
Children live in the moment and find it really hard to hold onto their money once they’ve got it, so start them young! Teach them to drop coins into their piggy bank from when they are a toddler, and help them understand why it’s important to let those coins build up before spending.
2. Open a savings account
Take your child to the bank and open an account in their name – this will help them feel part of the process and understand the importance of saving for the future.
3. Reward their efforts
Let’s face it, saving is pretty boring when you’re 10 years old and would rather rush out and spend, spend, spend! Make sure you praise their efforts to save whenever you can, and encourage them to treat themselves sometimes too.
4. Goals and dreams
As your child gets older, talk to them about their dreams – do they want to travel the world, buy a house or train to be a doctor or a vet? What does that mean for their savings? Help them to see how much they will need to achieve their goals.
5. Talk about money matters
Children need to understand about money and realise that they can’t have everything they want or everything they see on TV. By talking about how much things cost and the true value involved in saving up for something special, you will help your child understand how finances work.
6. Set a good example
Remember that your child will learn by example, so create your own piggy bank and make it clear that you are saving up for a trip out, a new sofa or a better car. This will help show your child that saving is a part of normal daily life.
7. Match their savings
Of course in these tough financial times this won’t always be possible, but if you can, offer to match whatever your child manages to save and help them achieve their goals even faster. Or if you’re not in a position to put in money, why not ask friends and family to let your child do odd jobs to raise more cash?
8. Save as a family
In difficult times, families stick together. Help encourage your child to understand the value of saving money by doing it as a family. Whether you’re saving for a holiday, a trip to the cinema or a new pet, make sure you all talk about how close you are to your goal and celebrate when you get there. Your child will love being part of your world, and it will teach them valuable lessons about the importance of saving and being patient.
Encouraging your child to save money will teach them vital life skills such as patience and determination. Saving money will also increase their confidence and help them to stay focused on their goals. By teaching your child these skills you really will give them a fantastic start in life.
About the Guest Author
This post is written by Ealing Trading, who provide cash loans when you need them most.
My parents taught me how NOT to save money by never saving themselves. What you see as a child is what you learn. And even though you can fight against it, it’s harder. So probably the best way to teach your child the traits you want them to learn, whether it is to save money or act responsibly or brush their teeth twice a day, is to adapt your own behavior to the trait you want and lead by example.
I suggest matching the child’s saving. Say they save 500, match it by giving them 500. 🙂