Let’s see the ways to empower the next generation by starting to teach our kids the importance of saving money even at the young age. Saving money is very important aspects of building wealth and having a secure financial foundation. In school we aren’t taught about how to save money or importance of saving money, we should be able to teach our kids through simple day to day activities.
Let’s check some of the simplest techniques of teaching our kids to be smart with money matters:
- Piggy bank
A piggy bank is a great idea to teach the kids how to save even a penny. Give children each a piggy bank and tell them that the goal is to fill in the piggy bank with notes and coins until there isn’t any room for more money. Help the kids understand that this piggy bank is for saving money for their future and more they save, faster they will be able to fill the piggy bank.
- Open bank account
So once the piggy bank is full, Help them count how much they have saved. Then, take the child to the bank and open a bank account for them. Deposit the money collected in the piggy bank. Teach them how much they have saved and also how the interest works. It is a great motivational idea of how the money grows over the time as long as they don’t take out the money from the bank.
- Using money wisely
Utilize the request of your kid to buy the new and latest toys by teaching them how to spend money wisely out of their pocket. Give the kids pocket money on a regular basis and ask them to save the money separately in a jar to buy whatever they would really want to.
Tell them that they would be able to buy anything they want only from the money saved in jar. This way you will help the children purchase only what they really want from limited amount. This way we can teach our kids that when they buy a toy with the money in the jar, they will have to wait to buy their favorite she’s until they save enough money in the jar.
- Budget planner
Maintaining the budget planner is very important in this era to have a track of how much we are getting and how much we are spending. Help children maintain a book on how much they are getting, how much they are spending on purchasing the toys and gifts. This way they will know how to save more or wisely spend money from their earning.
- Lead by example
Children often learn from examples. So the best way to teach kids to save money is by you spending the money wisely. Lead by example by spending money wisely while shopping groceries at local market or at malls. Teach them about how and why we are saving money for their higher education.