Introducing the idea of saving money might seem like a tough idea to teach children. However, there are a number of advantages to teaching kids the value of money at a young age. One of the world?s most famous and outspoken billionaires, Warren Buffett, is a firm believer in teaching kids the value of money. According to him, the earlier children learn the ins and outs about finances, the more successful they?ll be later in life.
In order to help your kid get a leg up on their future, here are a few tips on how to get the kids interested in saving.
Choose the Best Bank
When your child is about 8 or 9, find a bank or credit union that has a program for helping children begin saving and have them start their own account. Talk about how money is earned and why we save it.
Find school programs and library resources to help get you started as well. Your bank might even have more information or pamphlets to help kids learn basic concepts about finance and saving money.
Form a Savings Support Alliance
Ask family members to cheer your child on by asking about their accounts and offering cash gifts rather than presents for birthdays or holidays. This will aid him or her in making consistent deposits and seeing their balance rise. That positive support will make it enjoyable, and they?ll be more likely to continue saving.
Get a Piggy Bank
Although introducing a savings account is central, a piggy bank is a wonderful way to help accomplish goals and?explain basic concepts. Plus, it?s a more tangible way to actually help them see exactly how much they?re saving.
Go on a Fiscal Field Trip
Have your child make all his deposits at the bank personally. Once you get home, log in online and reveal where the money is and how it appears in the account after making a deposit.
Lead by Example
How?s your credit? One of the best ways to help children save is to set a positive example. Children learn by seeing, so seeing you save will help them get into the frugal spirit.
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It?s difficult for kids to think years into the future. Take a seat with your child and help set both short- and long-term savings objectives. As younger kids are more apt to have enough money for quantity rather than quality, let them use short-term savings at the dollar store every few weeks to develop an understanding of how much a particular amount of money will buy and how to purchase things in a store.
Establish a contest for your kids to see who can keep up with a budget the best, or suggest matching the weekly victor?s saving deposits. Saving is an enormous part of monetary consciousness.?If you make it into a game, they will be able to see the benefits of keeping up good habits.
Teaching your kids good money habits is essential to their understanding of the world around them and how to improve their lifestyle in the future. Take the time to improve their grasp of concepts like earning money, how to save, and how to determine what to spend. Making these impressions now can last a lifetime.