As we listen to the news, talk of recession even depression can no longer be avoided. Our parents or grandparents who have known the “great depression” knew that we needed to save, and they taught us this value. But in more recent years many of us faced with more abundance have been less likely to teach our children how to save.
So today for people who have not yet started this process with their children I offer a few tips on how to teach children how to save money.
Teach children about money at an early age. As a matter of fact coins make a great way to help little kids learn how to count. It is fun for you and your child to play store to teach the value of the coins.
Teach by example, show your children how to follow the money to the bank. Even if money is tight show your children that you pay yourself first and put a small amount in savings. Tell them the importance of this gesture, regardless of how small the amount.
To that end give your child a piggy bank and encourage him or her to put in a determined amount each time he/she gets an allowance, earns money from chores or gets money as a gift. Children need a reason to save money you might consider having a short term goal, saving for a small toy for example, and a long term goal, money that is deposited in a bank.
Open a savings account in each child name and take the children to the bank to make deposits from the piggy bank once in a while. As they get a little older they will learn to make their own deposit.
One great enjoyable way to teach the children these valuable lessons is to play the game of life with them. They will quickly learn that they need to invest early in the game of life and they will get the idea not to spend all they earn. The board game is not the only way to teach these lessons but it is easy and fun for the whole family.
Of course teaching our children about saving money is about building character, it takes time. With your guidance and patient teaching they can learn to delay gratification and save for something they want, they will learn to know the difference between need and want, a skill that will serve them well in life.
For more ideas on how to encourage your children to save check out this book, it offers more tips and great strategies to teach children money management as well as idea on how kids can earn money. This book explores some of the following areas:
- Teach your children about money according to their age… (age is everything!)
- Ways for kids to make money… once they taste the freedom and pride of earning their own money they will never ask you for money again!
- Avoid the #1 mistake made by 90% of all people trying to get rich… don’t let your child turn into Ebenezer Scrooge!
- Have your child create the exact future that they desire so YOU don’t have to SUPPORT them financially… and neither will the government!
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