Teens do not understand the value of earning and spending money. They are not accustomed to investing and how necessary this is, even if they are still students. As parents, we play a crucial role in this area.
You should be able to teach your kids on how to save money and understand how the earlier you learn to invest and save, especially during your childhood, the more that this will prepare them for the real world.
Here are some tips on how you can teach your children how to save money:
- Children should be educated of the meaning of money. Once your children know how to count, that is the perfect time to teach them the meaning of money. Be consistent and explain in the most simplest way and do so frequently, so that they may be able to remember what you taught them.
- Always explain the value of saving money, its importance and how it will impact their lives. It is important that you entertain questions from them about money and you should be able to answer them right away.
- If you give your children an allowance, only give it to them in denominations. This way you can encourage them so that they keep track of for the future. Motivating your kids to save money encourages them to be able to purchase things that they may want as well and this way they value the concept of saving money even more.
- You can also teach them to work for money, like with chores if an older or younger child does a certain chore on their list, they receive pay for fifty cents and the more chores that they complete, then the more money they will earn for their efforts. This concept of earning little money will make them think that money is something they have worked for and should be spent wisely.
- You can teach them to save money by giving them piggy banks where they can put coins and wait until they get full. You can also open bank accounts for them and let them deposit money from their allowance. You should always show them how much they have earned to keep them motivated.
Money and saving is not something that is learned by children in one sitting. You should be patient in teaching them and relating the value of money in all of their activities. Children will learn this easily if you are patient and consistent in guiding them and encouraging them in this endeavor.
~ Article by Mandu Usoro