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9 Ways to Teach Your Kids About Saving Money

9 Ways to Teach Your Kids About Saving Money

Financial literacy is an important life skill. As a parent, it’s your job to instil good money habits to your kids while they are young so they can bring these habits into adulthood. A good financial foundation at a young age can make it easier for your kids to face the financial challenges they may experience in the future.

If you’re unsure on how you can teach your kids financial responsibility, here are nine money management activities and a money saving plan to get them started:

  1. Start with a piggy bank: If they want to buy something, you can tell them to start saving for it using a piggy bank. This can lift their motivation to start saving up. You can also illustrate how having money saved up can be beneficial in the future.
  2. Open up a savings account for them: Bring them to the bank to help them open up their own savings account. Teach them that money is deposited in the bank for safekeeping and that they can withdraw it when needed.
  3. Teach them the consequences of credit cards: We are in the cashless age today, so it’s essential to teach them how credit cards work. Explain to them the interest rates and how the repayments work and the alternatives such as Debit Cards.
  4. Set a good example: Let your children see that you practice what you teach them by having your own piggy bank, or by saving a portion of your salary.
  5. Give or find them a part-time job: Remind them that money doesn’t grow on trees. You can do this by giving them or helping them find a part-time job. This way they know that they need to work hard to earn money.
  6. Let them use money management apps: Your kids may be playing games on their tablet or smartphone already, so consider teaching them financial responsibility through apps that are geared towards children. Some good examples are Piggbybot, Bankaroo, and Kids Money.
  7. Explain to them about needs vs wants: Encourage them to prioritise the needs, and teach them to think twice before they make any purchases.
  8. Make them part of your grocery shopping: When you go grocery shopping, let them come with you. Discuss with them how you choose products for the right price. This will also be a good time to demonstrate the difference between buying wants and needs.
  9. Include them in creating your household budget: Teach your children how you budget for monthly household expenses such as food, bills, mortgage, and school fees. This will help them get a better understanding of how much you spend for the basic needs of the family.

Teaching your children how to save money is one way to develop their healthy financial habits. Money management skills should be taught early on so they can make better spending decisions through adulthood.

 
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