6 Tips to Teach Kids to Save Money
White or black, fair or unfair, money is the driving point of everyone’s lives. We always have the urge to earn and the drive to achieve. The moment we get our pay we spend. Sometimes we even spend like crazy. We think on the spur of the moment, not about the future and we often repent for spending too much. If our kids do the same, we cannot blame them for they have learnt it from us. Spending wise and saving money is a habit that you need to cultivate and does not come by default. Many of us tend to be penny wise and dollar foolish which is the silliest thing to do. A money-wise kid will grow up to be an intelligent person. Here are a few tips on teaching kids to save money.
1. Start early
The habit of saving should be imbued in kids as early as possible. Age 5 is ideal for kids to start understanding money and saving it. Saving can be made enticing and exciting by inculcating the use of piggy banks.
Kids imitate their parents. We should be careful in spending and should make them observe how we spend. Copying this, will in one way, help them. Stand as a role model to your kids.
Talk about the family budget in a very light manner. Being kids, they might or might not be able to understand the importance of saving. They might also sometimes do loose talk with their classmates. It is always important to tell them money issues in an appropriate manner. Explain how saving helps and what are the advantages of saving.