One of the most valuable skills you can pass on to your kids is money management. With such inflation in expenditure, it has become highly necessary to teach your kids about the emergence of saving money.
My son loves saving money. He just loves to see his piggy bank being gradually loaded with coins. And the day he empties it out to hand over me so that I can deposit his savings in his junior account, his ecstatic face encourages me to help him save his pocket money.
Now you can ask me what inspired him to inculcate such a valuable habit. Well, there are several ways out there to motivate your children to save money.
No matter how old you are, it pays to become financially savvy. Children are always curious when it comes to money. Through observation and practice, they can be taught about it as soon as they are familiar with counting pennies. You should educate and inspire them to become regular savers. This will greatly help them in the future when they become financially independent and make smart financial decisions later on in life.
To motivate your kids to save money, you should approach considering their age factor. You should always keep in mind they are not grownups, so your mature suggestions would be like Greek and Latin for them.
5 effective tips to persuade kids to save money
1Use different envelops
I know this is an old school technique, but believe me, this is going to work. The envelope budgeting system is common with elders. You can apply the same trick with your children too. Ask your kids to draw a picture of what they want on each envelope.
You should also make them understand that it may also take some longer time to save for any particular item.
For instance, if the picture on the envelope is of a toy then it will come under short-term saving type and if it’s about buying a video game then it will come under long-term saving.
Your kids should understand the long-term goals and that patience is key to such savings. And that a third envelope can be created for spending on everyday requirements such as lunch at school, commuting to school and coaching classes and so on.
2Create a saving goal chart
Once your kids figure out what they want to save for, you can then help them to come up with a chart on weeks. Each week should be represented with a box and a sticker can be put in the box stating that week’s allowance is set aside.
My son also went through the same process. In one instance, he had put a picture of a Transformer toy he wanted on the chart. We sat and estimated how many weeks of the budget it will require to do that saving. Every time he had money to save, he would run to his room to put a sticker in his preferred box.
This way we could see him going closer to his goal.
3Reward your kids for achieving their goal
Meanwhile, never forget to give your children a treat when they achieve their goal. I treat my boy every time he hits the bull’s eye.
If you find your children not spending money for a certain amount of time then surprise them with a reward. This will encourage them to save more.
4Set an example
One of the best things to inspire your kids on this is to let them see you save money too. Put money in a jar in front of your kids and tell them it’s your savings jar. You can also share a secret with them telling them this savings is for a birthday present for their dad. By doing this, you’ll not only win their confidence but also make them influenced by your savings habits.
5Take tip from your experience
I have always tried to pass on to my kid what I was given by my parents. Once in my childhood, I became stubborn before my parents to get me something that was really expensive. My dad drove me to the nearest slum area and showed me the kids, who were not even lucky enough to wear a good piece of cloth.
You can also come up with something similar to this. Expose your kids to reality. It will help them learn quickly.