How to teach young children how to save?
Every day you strive to teach values and good manners to your children, because you want them to be successful men and women. Instilling financial habits in children and teaching them to save since they are young children can contribute to raising independent children, 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. Giving them the example with a thrifty attitude will be decisive for their training in the future. But how to teach them to save from a young age? Discover 5 ways to achieve this.
1. Teach them to save their allowance from an early age
From the age of 4 or 5, assign them an allowance and inform them how many days it should last, so that they understand that saving from a young 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 “spending,” “buying,” “managing,” and “saving.” 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 the snack instead of buying it), this will help you to teach them how to save from a young age.
2. Set specific goals and specific rewards
Encourage them to save from a young age with a specific goal. 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 goals they pursue and the rewards. For example, by gathering the money in a certain time, they can receive an extra contribution to the allowance that completes the amount that is required.
3. Put the photo or savings plan in sight
So they don’t lose heart with those goals, place a photo of the item you want in a visible place so they always remember it. Thus, they will be motivated to save from a young age.
You can make it even more visual by placing some indicators, such as a bar or graph to mark your savings progress with different colors. So you can draw yourself how you are getting closer and closer to your goal.
4. Prepare a piggy bank together
It may seem trivial, but a piggy bank can be quite useful. Look for one that is transparent and attractive, this will allow your children to observe how to save from an early age, in addition to seeing the growth of their savings day by day.
They can also decorate together a glass jar, a plastic bottle, or buy one from a character you like. The ideal is to empower you from what you are both doing and integrate you into this important activity.
5. Take them to the bank
Take them with you to the banking agencies so that they become familiar 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 a young age.
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