As the old saying goes, a penny saved is a penny earned. So, earning can start the day you start saving and this means that you don’t have to be an adult to start saving. It is important that in order to cultivate saving as a habit, you have to start practicing it from childhood. So, teach your tiny tots some tit bits on money saving and let them reap the rewards of this healthy habit in the future. Here are some easy and practical ways to introduce and inculcate good saving habits amongst your kids.
1. Talk About Money
Talking about the importance of saving to children is very important. Instead of getting into lengthy, boring and jargon-filled discussions, talk about savings casually but in a manner that children would get the point. For instance, let them hear your conversation with your spouse regarding your financial plan and the arrangements you’re making for retirement. This way, you set a good example through your life for children to see and follow. Speak to your child about financial independence and help him/her to save for a good cause or to buy something that s/he has been longing for.
2. Make a Savings Plan
After discussing with your child, once you know what your kid wants to save for, make a plan for the same. Figure out how much money is required and how many weeks it will take to achieve the goal. You can help your child make a beautiful chart regarding the same and hang it in your kid’s room.
3. Gift a Piggy Bank
Gift your children piggy banks and encourage them to put every coin and currency note they save into it. For your kids, this is an exciting way to save.
4. Offer Rewards for Saving Money
Reward your child for saving money. Positive reinforcements make your child happy and proud. For example, if your child succeeds in saving the amount s/he intended to save, then you may give him/her some money as a reward. Or you may motivate your child by providing him/her an extra 1/2 hour of video games or buying toys or anything that the child likes.
5. Open a High Yield Savings Account
Banks and post offices provide saving accounts for kids. Look for an account that can provide your child with a good interest rate. Make him/her understand the concept of interests and let your kid start saving early!
6. Play Games
Playing games are a fun way to teach children about money and savings. Games like Monopoly and The Game of Life can teach the nuances of financial planning and money management skills.
7. Look for Good Deals with your Children
While shopping, discuss the pricing and value of items that you purchase. Let your child compare prices with your help and become more prudent while dealing with money.
As festive season is round the corner, implement these saving tips right away, so that children start to learn to save the token money that they get this season!
Let us know which is the best tip you liked and why, among the ones mentioned above. Comment us and let’s start a healthy discussion