Monday, April 19, 2010

Teaching Kids How to Save

When I was young, my mom thought me how to spend and save money. She would usually give me a week's allowance and would tell me to spend half of it and put the half on my piggy bank or coin bank. That time, I didn't understand why I should save as I can always get money from her. But later on, I understood the importance of saving. As I become a mom and a grandma, I also tried to teach this saving value to my little ones.

I believe, that only parents are in the best position to teach these children on the significance of saving money. Parents should talk to their children at a young age till they are grown up on how to handle money matters. There is no right time to start educating them on spending and saving values than at the earlier age. The younger, the better.

However, teaching them to handle money and saving them is not easy. We need the right approach so that children can understand this. So, here are some tips on how to teach your kids on saving money:

1. Teach the value of money as early as possible. The right age is when they are learning to count. Explain the basic terms as to why it is important to save. Tell stories related to saving money like the story of The Ant and the Grasshopper.

2. Never use complicated words in explaining why saving is important. Always answer their questions instantly and emphasize the value of money and it's impact to life.


3. Give their allowances in small bills. Teach them to save half of the bills and spend half of it on important things only. Tell them that if they want to buy an expensive toy, they must save for it as you will not buy it for them.

4. Start teaching them how to earn money. Ask them to help do some chores at the cost of some cents. As they grow older, they can also ask neighbors if they have some errands for them at a small cost. They will realize the value of money as they earn it.

5. Give them piggy banks. Open them when they are full so that they will know how much they saved. Bring them to the bank and open their savings account in their name. Showing the bank book with the amount of money in their names will give a sense of accomplishment. In this case, they will feel that they are taken seriously in adult world. This will keep them more motivated in saving.

Kids will not immediately learn the importance of saving. Parents must be patient enough in teaching them. Emphasizing this value will help them inhibit the habit of spending wisely and saving money that will be useful they they grow old.

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