Teaching children about money and how to save it is something that all parents should do. This is something that schools often ignore, and sadly, many children grow up without understanding the importance of budgeting and saving money for the future. As parents, teaching these lessons to children is like giving them a gift that they will use for the rest of their lives. Continue reading to learn how you can teach your child about money and the importance of saving.
Don’t give children everything they want
As parents, it’s easy to fall into the trap of wanting to make your children happy. This may involve rushing out to buy the latest toys, or electronics. Doing so is a sure fire way to set a child up for unrealistic expectations and frustration later in life. Teach children that life isn’t filled with instant gratification. In order to get the things they want, they must work and save up for them.
Give children an allowance
Children can’t really learn about money, if they never have any. Give children a weekly allowance. Let kids use their allowance for items such as toys, new cell phones, and extra clothing, outside of the regular clothing items that parents buy. Teach children how to work to make extra money if they need more than what they have. Let them do yard work for neighbors, or pick up extra chores around the house. Just don’t hand them money, let them earn it and save. This is a wonderful lesson that they’ll need for their future.
Have kids open up a child’s bank account
Most banks have special accounts available for those who are under 18 years of age. These accounts don’t carry the same fees as accounts geared toward adults do. Have children save a portion of their allowance each week. Take them to the bank to make a deposit. This teaches them to save for the future instead of spending everything they have as soon as it’s in their hands. This lesson can save the a lot of stress when they are grown and living out on their own.
While children may fuss about having to save, and budget their money for the things they want, when they are grown, they will thank you for teaching them how to handle money. Far too many people never learn how to do this. You’ll be preparing your children for the future, a future that will hopefully be a lot easier because they learned how to care for their money.