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The Importance of Teaching Kids About Saving Money

The Importance of Teaching Kids About Saving Money

The Importance of Teaching Kids About Saving Money

It is important to teach kids how to save money at an early age in order to make them quite responsible in their life. However, the million dollar question that most parents like to ask is; how do I teach my kid to save money? This is simple pretty straight forward especially if you understand the basics. The one thing you should have in mind is that if a kid understands the importance of saving money, then definitely he will never have a problem with expenditure or anything related.

How to teach your kid about saving

There are quite a number of ways how you can teach your kid to save money and the same time show how to spend the extra. To begin with, the easiest is to take your kid to the bank and show how deposits and withdrawals are made. Do your level best to explain why you are saving money, and try to limit spontaneous vacations that can eat into your savings. In this way, you can easily explain to your kid why you are saving in order for you as a family to have one big amazing vacation.

If you want to walk the talk you can go for a money saving tool, of which you can use as a family. Remember, kids lean best by copying what you do and this can help your child understand all that concern short term goals and the long ones.

This is ideal for children who have already started handling money, or are within a bracket that is given pocket money for their personal use. Importantly, show your kids that there are always choices when it comes to spending money. And, in order to create a balance between income and expenditure, they should always prioritize and differentiate between needs and wants.

It is equally important to accompany your kid at the ATM or supermarket, and let them have a first-hand experience on how money is spent. It is a plus if you talk and show them how bills are paid, why they should be paid, and anything in between. Importantly, tell and show the kids that money is earned by working hard and smart. In this way, a child grows up knowing that in order to live in the money economy you must work in order to earn a living.

ABC’s of teaching kids about saving money

It can be pretty difficult to know how best to teach your kids about saving money, especially if you have no idea on what to say. However, do not be dismayed because children are quick learners. Here are some tips for you on the do’s and don’ts about inculcating money saving techniques to your child.

Teach about priority

This is one of the most important lessons that you should teach your kid about. In other words, make it a point that your kid understands the best option when it comes to spending on essentials. Also, let your child differentiate on what he/she needs now, and what can wait until a later date. In this way, children will learn how to avoid impulse buying as they grow into adulthood.

Give room for mistakes

Teaching savings to your kid is a long journey, and you can sometimes get frustrated. In order to make the process enjoyable, allow your kid to make mistakes. It from the made mistakes that your kid will learn what to do, what to avoid, and how to be a savvy buyer.

Deals, discounts, and promotion

The best way to teach kids about savings is to involve them into daily purchases or something related. In this case, show your kids how you get the best deal while purchasing, how to make a good bargain, and the best way to get discounted products. For this reason, kids will learn that they can save a lot of money in the long run only if they do a little research on what they want to purchase.

Savings account

It is imperative to show your children that with savings account, you can pile money over a long period of time. This should be quite practical as you must open an account as they witness, and any time you go bank some money encourage them to accompany you. After a period of time, ensure that they accompany you so that they might witness how much money you get and the interest you’ve earned.

Additional tips

Money saving techniques can be quite challenging if the child does not understand intrinsic value of items. However, talking to your child can be a big boost for anyone willing to help the child learn. Tell them about how they can earn money while still young, encourage then by tipping on a job well done, and of course get them a piggy bank that they can use.

About the author

Jessica Clay

American-born California beauty expert, Jessica Clay is an organic and technological facial specialist combing natural methods and cutting edge, anti-aging techniques. She is a mom of two adorable homeschooled kids as they used to travel as a family and practically living on the road. She owns a skin care brand Pele Essentials which strives to use only organic and vegan formulas to provide the most effective skin care. Visit her website peleessentials.com.

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