How to teach children to save money?
Economics, like other virtues, should always be present in our family. Children from an early age need to be accustomed to a certain way of planning expenses. A very important piece of advice that you need to understand from an early age is: never get into debt.
Teaching saving means giving our child an idea of simple and real criteria, due to which we evaluate the need to make any purchase. Reasonable care refers not only to money but also to time, effort, and the like. You can find a lot of advice from parents by reading more reviews in this extremely interesting field.
How to teach children to take care of money?
At what age to start giving pocket money to children? How do you explain to a child what the family budget is and why it is impossible to buy everything at once? Sooner or later, every parent asks these questions. Experts are sure that children should be taught how to spend money properly and develop the habit of saving from an early age.
Today, 75% of underage teenagers between the ages of 14 and 17 have their money, most of which (81%) come to children as pocket money from parents. Receiving such funds is not always subject to clear rules so that children can hardly plan these “incomes”. The lack of control over the funds leads to a decrease in responsibility for their distribution, such data were obtained in a full Russian study by the authors of the project Children and Money.
Now the need for future financial self-sufficiency is not explained or is poorly explained to the child by the parents. However, you need to teach your child the same way you teach him to brush his teeth or make his bed every morning. The child needs to understand the basics of financial literacy that will help solve any financial problems:
- Understanding the nature and function of money,
- Ability to value money,
- Ability to count money,
- Ability to prepare a financial report,
- Ability to earn and create sources of income,
- Ability to save and save,
- Ability to spend money and live within your means,
- Ability to repay debts,
- Ability to share,
1. Be a role model.
Show your child the budget and explain how you can save money by comparing prices in different stores. Take it with you to the bank and show you how to deposit money into a savings account. Explain to your child what you are doing along the way.
2. Invite to participate.
Ask your child to help you find better deals for a particular item in the store. You can also ask your child to make a list of products to buy based on your budget. Encourage them to look for discounts and sales.
Calculate your family budget with your children. Teach them to save money, for example, by turning off the light when they leave the room. When discussing family budgets with your child, remind them not to share this information with school friends.
3. Give pocket money.
If the child is small, give him some pocket money until he grows up and realizes its value. Give pocket money in banknotes and coins so you can save them in separate jars for different purposes.
4. Buy a piggy bank.
Young children can buy a piggy bank in the form of a toy so that they can temporarily store their money there, older children can use jars with inscriptions indicating the purpose of the money. Open accounts for them from which they can withdraw money when they grow up. Older children can be told about bank interest.
5. Teach the economy in a fun way.
Teaching children about finance should not feel like lectures. It can be fun. When explaining difficult terms, use funny illustrations to help your child remember the material. Buy a board game like Monopoly that gives them an idea of the value of money.
