Teaching kids the value of money and how to save it for something that they really want will teach them discipline. It is never too early to start teaching them about finances and making a budget that will work for them. Teaching them these skills can help them to stay out of debt at an early age and teach them how to make the proper financial decisions.
How to Teach Your Children to Save
- Allow Them to Earn- Allowing them to earn some money is an important step in teaching them about its value. They will learn that in order to earn money you have to work for it. This will also teach them that what to expect when they are old enough to start in the workforce.
- Give Them Some Chores- Assign daily chores and/or weekly chores that are age appropriate. If they want to earn more they will ask you what are some other chores that they could do that would help them to earn more.
- Open a Bank Account- When they have earned a tidy sum of money from doing their chores, open up a bank account for them. Teach them about adding some of their earnings to their bank account. You could also teach them about the interest that it will accumulate on their balance.
- Teach Them to Comparison Shop- When your child is old enough to know about the value of money, teach them how they can save money by comparison shopping. You can show them how to do this when you look at your newspaper inserts to see which store has the lowest prices on an item that you wish to purchase.
These are just a few things that you can do to teach your kids the value of money and how to save it. It will also teach them the value of money and to appreciate what they have bought. Teaching your kids to save will help them to understand financial planning and budgeting for the teen years and beyond.