Few days back we had received an e-mail from one of our readers, who had asked us to share some valuable tips with him on teaching kids about saving money.
Thinking the tips to be useful for every parent, I am sharing the mail with my readers in this edition. Do have a read!
The mail goes as this –
Dear GrabOn Expert,
It would be great if you provide me with some tips to teach my kids on saving money. They are in their growing years and have started showing extreme enthusiasm in spending money. I want them to be smart enough when it comes to money management. Considering their tender age, how should I go about helping them on this? Please help.
Reply from one of our GrabOn expert –
Glad to know about your concern in making your children financial smarts. With such an inflation these days in almost everything and rupee drastically scaling down, it’s high time we should now focus on saving money. Therefore, we appreciate your interest in teaching your kids about the importance of saving money.
Since age is a receding factor while motivating kids and when it comes to financial matters, you need to consider their age factor first. Quite recently White House launched an initiative where parents are supposed to give essential financial lessons to their kids. we offer you an elaborate edition on monetary milestones set for kids at different ages. Do have a look!
Play a game of shore and customer: First of all you need to teach your kids how to identify coins. You can make this learning activity interesting by playing a game. In this game, you will pretend to be a store owner and your kid as a customer. By this, they’ll also learn that they need money to buy things.
Money doesn’t grow on trees: This may be old school saying, but you need to make your kids realize that we have to earn money. You can talk about your job and explain them about different occupations in our society.
Teach them to be patient: Whenever your child wants something at any store, just tell them that only if they can save enough money they can get that stuff next time.
Choices on spending money: Teach your children to ask a few questions to themselves every time they are at any store – “Do I need this item? Would it cost less somewhere else?” If there is any birthday party ahead then ask your child to purchase within the set budget. Making them familiar to budget system is crucial while giving them monetary lessons.
Comparing prices: Ask your kids to make it as a habit of comparing prices before buying any particular item. The best you can do is take your kid for grocery shopping and let them how a 1 kg packet is always cheaper than buying the same product in less quantity when it’s in regular use.
Piggy bank: With everything becoming hi-tech these days, the piggy bank may seem boring to your kids. So, you can tell them about junior savings account and encourage them to save money and see it grow with time.
Risk of online information sharing: Kids have become more gadget savvy than parents. Accept this! The kids falling in this age group are pretty aware of online shopping trend. So, it becomes necessary for you to counsel them and teach them some basic rules like they should never purchase anything online without your permission. let them know how it can be dangerous to share information online. Entering personal banking information online, like credit card number, bank account is dangerous as someone could steal it.
Credit card adversities: Your kids might have seen you using credit card several times. It is your responsibility to let them know that using credit card is like availing a loan.
Three month savings for emergencies: Help you r children come up with a budget and estimate the emergency fund. Encourage them to start saving money to face any kind of unforeseen incident. Even though, you’re always there to support them, but make them aware about the responsibilities.
There is a lot to discuss with your kids on money. But you can now initiate by helping them avoid making some of the dumbest mistakes when it comes to spending.
Hope you found this post useful!