Every day you strive to teach your children values and good manners because you want them to be successful men and women. Inculcating financial habits in children and teaching young children how to save can contribute to raising independent children, to their responsibility and sense of saving.
¿Why is it so important?
Especially in this digital world where purchases can be made online and without any parental permission, teaching them responsible consumption and money management is essential.
Financial habits in children are learned at home. Setting an example with a thrifty attitude will be decisive for their training in the future. But how to teach them how to save since childhood?
Discover 5 ways to achieve it.
1. Teach them to save their allowance
From the 4 or 5 years of age, give them an allowance and inform them how many days it should last, so that they understand that saving from an early age can be advantageous. You can even reward them with a small increase when they have managed to save for a reasonable time.
Explain the basics of finance, such as “spend,” “buy,” “manage,” and “save.” If they consume their allowance ahead of time, avoid giving them more money, use other mechanisms in case they need it, but not money (for example, give them a snack instead of buying it), this will help you teach them how to save from an early age.
2. Set specific goals and timely rewards
Encourage them to save from a young age with a specific objective. For example, they can save to buy an item they want. They can be simple things, such as a toy, a video game or an electronic device.
They can also put together a list of priorities, with the objectives they pursue and the rewards. For example, by raising the money in a certain time, they can receive an extra contribution to the counter that completes the amount required.
3. Put the photo or savings plan visible
Don’t lose heart with those goals, place a photo of the item you want in a visible place so that you always remember it. Everybody will be motivated to save money like this!
You can make it even more visual by placing some indicators, such as a bar or graph to mark your savings advances with different colors. You can draw how he gets closer and closer to his goal.
4. Prepare a piggy bank together
It may seem trivial, but a piggy bank can be quite useful. Find one that is transparent and attractive, this will allow your children to observe how to save from small, in addition to seeing the growth of their savings day by day.
You can also decorate a glass jar, a plastic bottle, or buy one of a character that your son or daugther likes.
5. Take them to the bank
Take them with you to the banking agencies to familiarize them with the value of money. As soon as they are old, ask them for a savings account in their name. Many banks give incentives for savings or give them piggy banks.
Follow these simple tips and guide them in their expenses until they understand that good financial practices give excellent results if they save from small.
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