Your children can be a frugal and smart money spender if you teach them how to spend and save money at their early stage. The youngest billionaire in the world includes a teenager who is just 18. He must have learnt much from his parents to attain such at that age. Although your children may not necessarily be the richest kid in the world, but you can train them to be a frugal and prudent money manager. It will as well give you confidence that you have raised a responsible adult.
So if you are a parent who has been trying to encourage your kids to save money, here are some simple little tactics for you.
Get them a Piggy Bank or Open a Savings Account
Our financial institutions have made things easier for parents. You can now open a bank account for a kid as young as a day old. You can consider getting your kid a piggy bank, which is the traditional way or open a bank account irrespective of their ages. Whenever they are gifted money you can deposit it for them (Mummy don’t spend our money oh). As they advance in age, you will see how easy it will be for them to blend in and do same. Apps such as piggyvest encourages saving and you can try opening an account for them on the App. Simply click here to get you started.
Share Personal Stories
Obviously you are the first adult your kids look up to and they easily learn by example. Consider sharing your own stories of saving money and how it has helped you greatly in being a great mum or dad to them. Be open and honest with them so they can relate to your story. Perhaps you struggled at saving money as a kid, and later overcame it; tell them how you did it. When you can provide them practical ways of saving money, it will inspire them to save theirs without much effort. And it won’t look like you are telling them an unachievable goal.
Teach them the differences between Want and Need.
Teach your kids the essence of money. It is not for a show-off business or oppressing neighbors. Neither is it a do-or-die affair when they can’t get everything they see around them. Let them have the lessons on ‘Want’ vs ‘Need’. Our wants are not necessarily what we need and vice versa. When kids learn to define a want versus a need, they will learn that one must save towards wants and spend immediately for needs.
Use simple examples like getting an extra toy is a Want while getting food is a need. You can use scenarios using their toys as the character in the story to drive home the points. We will talk more about the differences between wants and needs in our subsequent post. So watch this space.
Create a Goal Chart
Depending on your kids’ ages, you can start teaching them about savings goals. Engage them in discussions to know what they desire in the next two weeks, one month, a year, or even ten years to come. Write or draw it in a chart for them and place it where they will often see it. This will encourage your kids to save money because they will have this illustrated chart to look at and perhaps it may encourage them to ask for more paid chore duties too. Teaching your kids to set savings goals is the perfect way to encourage the love of saving money.
So without much hassle of lecturing them, here is how to get your kids to save money. They learn best through open communication, setting the example, and letting them have a picture of what you are telling them. Hope this will be of help? How easy has the journey been asking your kids to save? Mind sharing it with us here?
Fabfrugals is not only here to help mums and daddies manage their finances alone. You can teach your children and that is what we are here for. Don’t forget to follow us on our social media on Facebook, Twitter, and Instagram. Also comment, like and share to enlighten others.