Teaching kids the importance of saving money is a skill that’s never too early to introduce. Use these 7 tips to teaching kids money saving skills.
1. Give them control of their money Otherwise they’ll think money will always be ‘on tap’ and that they don’t have to be responsible for their spending or make plans to save for bigger things. Bad spending habits mean they’ll take longer to become independent and could have trouble with money.|
2. Teach them to save for money goals You might also create a chart together showing their goal, and little savings milestones along the way. That way they can get excited about watching their savings grow.
3. Teach them that reducing expenses makes goals come faster ‘If I want to get to a goal faster, I have to save more…’ which means spending less on other stuff. Remind them about the decision they’re making every time they want to spend money.
4. Teach them about having a budget It doesn’t have to be complicated, but teach them how to plan their spending, instead of having a big wad of cash that keeps getting smaller with every impulse buy.
5. Introduce them to the concept of investing and the growth that is their money earning money for them. It’s free money, almost!
6. Teach them that the goal of marketing and advertising is to get us to part with our money, and how they affect us to make us do this. And talk about consumerism, and how it hurts us financially, how it’s not good for the environment, and how it leads to a cluttered house full of expensive and wasted stuff.
7. Teach them about impulse buying and that feeling of ‘I must have it now’ that we all know very well! Have a cooling off period about a bigger purchase and teach them that what we buy shouldn’t be to impress others…
Give them control of their money Otherwise they’ll think money will always be ‘on tap’ and that they don’t have to be responsible for their spending or make plans to save for bigger things.