It is said that habits which are begun in childhood remain the same all throughout life. One such
important thing that children need to learn from the beginning is money management. Honing the skill
of managing funds helps in the long run as with time handling funds become a duty. Once a person
starts earning, he will have to know the various ways in which he can make investments and do savings
at the same time to ensure a secured future.
Here are some tips that parents can use to teach money saving skills to their children:
First and foremost let kids understand the value of money. Do not give them money whenever
they ask for it. Instead encourage them to earn the same. If they are asking for pocket money,
ask them to get a small job done and then give them the money. This will help in growing an
understanding that money s hard earned and not obtained easily.
Let you kids have a savings account. Having an account will make them responsible. The account
can be opened in a bank or in a post office. Make a habit so that the kid deposits some money in
the savings account now and then. The savings can be done from the pocket money that the kid
gets. Update the passbook of the account from time to time and show the kids how the amount
is increasing in the bank. Kids are sure to be encouraged by the account balance increasing.
Teach your kids how making a budget helps in saving money. Creating a budget seems to be a
difficult task for many adults. While making a budget, involve kids in the same. Take their
opinion while making a budget so that they are well aware of the expenses in the family. It is
interesting to note that sometimes children can come up with smart decisions for saving money
in the budget.
Try and encourage your kids to fulfill a savings goal. When kids are saving money, they should
know why they are doing the same. Suppose they want to purchase some toy that is little
expensive; tell them to save money for the same and buy the thing. Or if your kids are little
grownups, they can save money for buying Christmas presents or gifts for someone’s birthday
and so on.
Encourage your kids to deposit money in their accounts on regular basis. Saving should be
turned into a habit and once children are used to it, they will have the knack of saving money on
their own. They will deposit money in the account as much as possible.
It has been seen that children who have had the habit of saving money right from their childhood
manage their funds better when they grow older. Parents who involve kids in monetary matters like
savings, investment plans and budgets help in making the kids more confident in these matters. When
they grow up, they can take up financial decisions with confidence. Also if there are some loan matters,
children should be made aware of the same so that they know how to handle them in future.
Author Bio: The author of the article is a financial writer and blogger and contributed to many financial
sites. Presently he is working on various kinds of loans – same day loans, short term loans, payday loans
and so on. Click on www.bigdaddy-loans.com to know more.
