Every parent wants the best for their child; quality education, the best clothes, good shoes, holiday trips- you just want that good life for your child. All of these involve a huge sum of money and if you aren’t careful, your kids would end up getting used to the luxurious life which in itself is not a bad thing, but requires adequate funding. Except you are sitting on a pile of money, then the best way to get your kids money smart is by introducing them to a saving culture early.
If kids learn how to read, write, run, swim, from a young age, why not teach them how to save now? Saving is not a one-day lesson, it has to be taught and practiced before it becomes a habit. “Save for the rainy day” and “Save before you spend” should be constantly preached in your home in order to teach them the values of money.
Saving can be taught in several simple ways at home. From opening a bank account for your child to teaching them not to waste food, reminding them to close the tap, and to turn off the lights.
Your kids need to be financially literate; explain what money is and how it is being used, let them see you making purchases with money, explain why you work and the days you do not have cash, make them understand the meaning of “saving for the rainy days”
Here Are Few Tips to Teach Saving at Home
Start with a savings goal
Teaching them to have a savings goal could be a big inspiration. You could have a target of what will be saved at the end of the year or at every month. This way, your kids would cultivate a spending habit by dividing their allowance into what should go into the bank and what should be spent. You could also encourage them to write out what they spent their money on, in order for them to see that they could reach their saving goal faster by adjusting how they spend.
Instill a Habit of Saving
Kids just want to buy everything; ice cream, burger, toys. “Mummy I want” is all you keep hearing and this is because they think money is kept somewhere and can be used anytime. Which is why you need to teach them that money isn’t only meant for spending. You need money for housing, clothing, school fees, hospital bills, unforeseen expenses- the bills are endless. In as much as you can provide everything for your child, remember saving teaches discipline, planning and goal-setting.
Create a savings account or buy a piggy bank
Those little cash gifts from Grandma and aunties could be of good use in the piggybank or saved in the bank. Piggybanks are the easiest ways to teach a child to save and it also makes them have a sense of ownership; trust me, every child protects their piggybank with all their might. There are lots of playful and creative piggybanks you could buy online and we recommend Mykolo.ng. You could also go as far as creating an early savings account for your child at any bank of your choice.
Stories can insSpire
Apart from creating a bank account or getting a piggybank, you could tell them stories of when your savings was of great use to you. It could be when you saved up to get your books in school, when you moved into your new house, how you started your business or when you bought your first car. Kids are inspired by stories and from this, they could start to imagine how their savings could be useful someday. You could also buy storybooks that teach how to save.
Help Kids Learn to Make Smart Spending Decisions
This is where you differentiate between wants and needs. Explain that needs are essential to living, very important and cannot be ignored. Things like food, housing, clothing, education and health are their major needs, every other thing could be gotten after they these needs have been settled and they have saved. Wants are just extras, not like they aren’t important but they could do without them; that bicycle could be bought next month, you could go for the trip next year, make them understand. You could use your budget as an example and promise that their wishes would be fulfilled soon. Whenever they want to purchase something irrelevant with their money, you could also advice on what’s right.
Model Good Financial Behavior
Children practice what they see. Show good examples of spending wisely and saving your money. You can’t preach what you don’t practice else you would be sending mixed messages. If you keep complaining you don’t have money but you end up buying expensive shoes and clothes for yourself, they get confused. Instead, act rightly and don’t complain too much about your finances. You could also cut unnecessary costs and make do with things that are available. If you want your kids to learn faster, you need to make smart spending and saving choices.
Show Kids the Value of Giving
In as much as their savings could be of good use, ensure you teach them how to share their money with others. Your job as a parent is to ensure you instill great values in your children and some of these are kindness, love and sharing. Showing love to your neighbors, friends and families are the best ways to teach a child how to share. You could also donate to homes, give to the needy and share stories of when someone was also kind to you.
Teaching kids how to save might seem like a tough task but you can make it fun for your kids. Trust us at Ruff’n’Tumblekids to go any length at making kids happy which is why we have partnered with Mykolo.ng to celebrate this year’s Children’s day. Your gift awaits you at the store, hurry down to your favourite store with your kids this weekend.