It’s not a surprise that parents want their children to know the value of money, especially in an economy that does not seem to be turning around very quickly. How can you teach your children to save?
Take Their Allowance
Sure, it might seem silly to immediately take back money you give to them; however, consider the value. If you give your children $5 per week, immediately ask for $1 back and put it into a savings account for them.
Set a Goal
The next time your child asks you for a new toy or bike, tell him or her that saving up for it is a personal responsibility. Help create a plan to save that money up.
Make a Visual
Children will love noting all of their accomplishments. Create a thermometer on a big piece of paper, and they can mark off their individual goals as they move up the scale.
A Savings Account
For older children, let them have some control over their bank saving account. Warn them that they must keep a certain amount of money in there at all times, and if they don’t, they will lose some of their television or video game playing time.
Once children are into their high school years, they can start to work. When they have their own money to spend, they are more likely to realize the value of it. Individuals who constantly receive money from their parents tend to assume that the flow will never stop.
Of course, children are required to take math. However, suggest they take one that focuses on some fundamentals of accounting or economics or one that is more related to a home economics approach. Taking these classes can help them learn how to budget and to, once again, understand the value of money.
Have a coin jar near the front of their house, in their bedroom or wherever they tend to empty out their bags and pockets. Do not allow anyone to use the coins until the jar is completely full. As a result, children will see how every little bit helps.
You can also teach them how money can be saved in the form of goods. Save up all of those plastic bottles and other containers, and go down to recycle them together. They will see that some money can be garnished from this simple act that is also healthy for the environment.
Match Their Funds
When they are little and receiving small amounts of money, offer to match whatever they receive for Christmas, their birthday, etc. If they receive $50 for their bank account, put in $50 of your own to help that account grow.
A Team Effort
Make a family goal, such as a trip to Disneyworld, for which everyone needs to save. At the end, show them exactly how their contribution helped out. Chances are, you’ll all feel a sense of accomplishment.
Hopefully, instilling these values into your children at an early age will make them smarter savers later on too.
Author Pam Johnson is all about saving money whether it be with her children or saving money on school. She enjoys blogging and is a contributing author for affordable online mba