Parenting: teaching your kids how to save money

Posted: October 15, 2013 in Child care, Family
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When I was a kid, I used to love saving money and see my piggy bank again and again thinking that it would accumulate overnight. And we used to get money on occasions like birthday, festivals or any other special occasion. But, today kids get a pocket money on monthly basis and so they don’t know the value money. Parents have to teach their child to save money and also the value of money. This isn’t easy because they usually want to spend the whole money immediately as they get. It’s the duty of the parents to instigate them to save money.

So it’s important for the parents to make their kids understand the value of money and the importance of saving.

  1. Open a bank account: take your kid to your bank and explain about what is done in a bank, how to deposit and withdraw money and why it is important to save money in a bank. If possible, open a kid’s saving account and encourage deposit some amount of his pocket money into it and keep a track of the interest earned.
  1. Setting goals: encourage your kid to set a goal for himself, like if he wants a toy or any other item for that matter, ask him to save his own money till he has sufficient amount and then buy it.
  1. Help them spend in a right way: Take your kids to rural areas or villages for a casual visit to explain them that many kids are so poor that they can’t afford to buy clothes and explain them they should not spend money on things which are not really necessary at that point, instead ask them to spend some in helping these children get the basic things. This way they will know the value of money and the value of life. Also, help them in spending the money for their toys in the right way. Teach them how to bargain and buy.
  1. Give rewards: You are already giving them pocket money, so make it a habit of rewarding them with non monetary gifts for every saving they do. Like a surprise outing, or toys or any other gifts, which will encourage them to save more money.

There are many ways you can teach your child to save money. But make sure you are not too strict on them in spending. Go shopping with them and teach them how to shop, and bargain, so they won’t get cheated. Help them take their own decision on buying an item and if they are wrong explain them where they are wrong and what can be done instead.

So, though it is not an easy task, but once they get a hang of it,they would be able to  become financially responsible in future and lead a secured and successful life.

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