By: Alecia Carroll

Being a parent means always wanting what’s best for your children. But here, the best doesn’t always mean the best toys or the best clothes. This most likely means that you want to lay the foundation on which they can build a successful life.

Usually, children don’t understand the value of money unless their parents make them understand it. At the same time, it is quite difficult for parents to teach their children and develop the habit of saving money. Your child may want an expensive toy or device, but they won’t know how much hard work you have done to make money for that toy.

In addition, because children are so innocent, sometimes it is very difficult even for parents to say no to them. We are all different, so there is no fixed age when you can start teaching your children how to save. Nevertheless, being a parent, you will have a better understanding of your child’s level of responsibility and maturity, and you should adjust this age as you see fit.

Some parents may decide to talk to their children about savings when they are only five or six years old. Therefore there is no right answer here, other than that the best time to teach them how to save is when they are ready.

10 Ways to Encourage Kids To Save Money

1. Let them know Want Vs. Needs

The first step in teaching the value of money is to let them know the difference between wants and needs. Explain to them that needs include basics such as food, basic clothing, health care, and education. In comparison, wishes are all extra from basic needs such as movie tickets, bikes, or smartphones.

2. Help them to set money goals.

A parent’s story of how you started saving money at an early age will be of great help to your child. Many parents shared their stories from their childhood when it came to money, and it worked too. For instance, you can share how you saved money and bought your favorite bike from your childhood. That helps your child to set goals for money.

3. Reward them often

Parents always give their children pocket money, but parents should pay attention to how their children spend this pocket money. You don’t need to be too hard on your kids, but rather encourage them to save more money. You can tell your kids that you will reward them extra money if they save most of their pocket money, but remember that the reward should not be too low or too high. This will encourage your kids to save more.

4. Provide a Place to Save

Once your kids have a savings goal, they will need a place to put their money. For younger ones, that can be a piggy bank, but if they’re a little older, you can create their own bank account. This way, they will be able to see how their savings are accumulating and how they are progressing towards their goal.

5. Tell Them to Track their Spending

The best part of being a good saver is knowing where your money is going. If your kids are receiving money, writing their daily shopping records and summing them up over the weekend can be a good way of saving money. Always tell them their money spending can achieve their savings goals if their spending structure changes.

6. Share real-life stories of other kids.

Comparing your child to other children is not a good idea at all, but there are some inspiring children who will inspire your child if you tell them their success stories. Give examples from other children of how they made money as children and how they became independent on their own. Stories like this will definitely encourage your child to think differently and do amazing things in life.

7. Give Them money related Books.

You can give them simple storybooks at first, so they get into the habit of reading books in isolation. And when your children grow up, you can give them books about money. That helps to expand their knowledge. It’s not that you should give out books about money that are not interesting, rather, you should choose books that are interesting because your child needs to read and understand them as well.

For instance, Rich Dad Poor Dad is a very fruitful book. This is how children learn good saving habits without getting bored. You can easily implement these ideas with little effort. So it’s time to discipline your children and help them have a good future.

8. Have a Conversation About Money

In today’s day, money doesn’t need to be a scary topic, but for some reason, people don’t really like talking about it. And avoiding such topics about money can send the wrong message that something is wrong. You don’t have to schedule long hours for these topics, just answering your child’s queries about money.

You can also get your kids involved in the family budget discussion. Explaining how much money your family spends each week and how that money is spent will let them understand what family living costs. Similarly, explain to your child about the prices of grocery items and tell them you can buy cheaper as well as expensive versions of the same item. It is also an opportunity to explain how to compare prices at the best price.

9. Start pocket money early.

It is difficult for children to understand the value of money if they do nothing to earn money given to them. Therefore, using a pocket money method can be a great way to start teaching your child how to manage and save money. Usually, some parents say they are simply teaching their children that money is what they must earn.

However, if you are giving your child pocket money, make sure they receive it only after completing given assignments, such as housework or completing their homework quickly. Simply giving them weekly rewards, whether or not they did anything to earn it, would teach them to completely ignore the importance of working for their money.

10. Lead by Example

Children notice more than you think, and they will see and learn about money based on your behavior. So set a good example and think about the lessons you could teach them based on your actions. If you always tell your child to save some pocket money but spend all of your savings on gaming stuff, it’s for sure that your child will notice and be able to imitate this behavior. Also, if your partner is constantly arguing about money, your child will start to think that money is bad.

Final Thoughts:

Teaching your children about saving money can seem like a daunting task. These days parents often talk to their children about sex, but not money. But with these tips, you can make understanding the value of money interesting for your child. Teaching children about personal finance is a phase that can take time. But if you try your best and be clear about money at all times, you will develop good habits that will serve your children well in future days.