Piggy bank

How to teach kids about finances

Saving money is an essential aspect of life – if you want to reap the benefits of all your efforts and make sure you do so for a longer time, savings are just what you need to do. And it’s best you ingrain this habit of saving since a very young age itself – and it’s your responsibility to make sure your kids culminate this habit into themselves since the very beginning itself. And how to do it, you may wonder – here are a few tips which you can use to make your kid used to saving right now itself. Read on:

Teaching

Pay them:

Assign a nominal amount of money to your kid for whatever task he completes. For example, you could pay them for watering the plants, for doing the dishes or other such household chores – this will not only make them understand money’s worth but also to know that money is earned only by working hard and with efforts.

Maintain an account:

Get a colorful notebook and explain to your kid how they can maintain their accounts – let them know how they can note down the amounts they earn and for what they spend the amounts they have earned. This will help them know the importance of every penny they earn and spend.

Piggy banks work wonders:

The anticipation when you have to break open your piggy bank that’s filled with money is just perfect – so why not use this to make your kids habituated to saving? Get a small piggy bank for starts – a colorful, appealing one will work best and teach your kids to put money into it –whenever they save, or it is given to them.

Goals:


Let your kids save up for that toy car or dollhouse they wanted so badly – the joy of saving up and purchasing something for yourself is just incomparable! So let them create a small little fund for the tiny little things they want to buy. If your child is sincerely saving towards this goal and is falling short of a little amount, acknowledge your child’s effort and pitch in some money by yourself. This will not only make them happy but also teach them the value of money.

Teaching kids the right habits at the right age will be beneficial for them in the longer run – it may be a bit difficult at the start to get them used to this habit, but making a start is always great!

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