BEST WAYS TO TEACH YOUR CHILDREN TO SAVE MONEY BY AGE
Teaching children about the value of money, about how to wisely spend is increasingly important in modern life. It is not only a necessary skill for the growth of children but also helps your kids form good habits and character from an early age. Many parents find it difficult to discuss money with their kids, but it is just as important as other practical issues in life you need to teach your kids to deal with.
If you look back on your own younger years and regret the way you manage your money, try to think about how to make your kids do better. By consulting parents with the success of teaching their children to save money, we collect and select the most effective ways to teach your kids to save money by age.
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Set a Good Example for Kids
Successful money management is the ability to make good decisions. Obviously, your child won’t understand what a bank statement is, but you can take advantage of everyday situations to talk to your child about money at a level they can understand.
As children get a little older, they become very aware of your attitude towards money. They will certainly wonder if you talk about saving money but shop uncontrollably. Therefore, you have to make sure that your actions match your words.
Teach Kids to Save with Piggy Bank
This is one of the best ways to teach your children to save money from infancy to the first years of elementary school. At this age, they are able to understand that when the piggy bank is heavier, they are accumulating more money. The savings goal should be simple, that is to make the pig full. At that time, you will help your child count money and teach him to use those savings for what makes the most sense.
Teach Children To Save Money To Buy Their Desired Things
Children in the early elementary school age can learn to distinguish different banknotes. By the age of seven or eight, they can understand the concept of equivalence on a simple level. For example, they will know two ten-dollar bills equal one twenty-dollar bill. Parents can create and invent some games to help them reinforce this knowledge. Additionally, children under the age of eight should understand that if they can’t afford the toy they want, they have to save up pocket money until it’s enough.
Besides, depending on the level of maturity, the child may start receiving a monthly allowance. So, children have to find a way to teach them to use it accordingly.
Guide Children to Compare Price When Shopping
From the age of nine, you can take your child to the supermarket. There, you can let them know if something on your shopping list is on sale. Your child will be smart enough to realize that the item is being sold for less than usual and they can take advantage of that opportunity to save. In addition, you should also emphasize that comparing prices is essential when learning to save money.
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Along with that, you should train children aged nine and over that money is needed to buy some of their personal items and entertainment. Thus, they will have more motivation to save. They should also know how to allocate money for spending, saving, and sharing.
Children at this age can understand the concept of using some of their own money to help others. When the savings are significant, you can suggest that your child donate to a charity or invest in something useful.
Introduce About Bank Accounts For Kids
Your son and daughter at the age of 12 and older can understand that the bank will pay interest on the money they deposit. They can also learn how to set aside a portion of their pocket money to deposit in the bank. Currently, there are many banks that have account programs for children with special offers.
Give Children More Responsibility In Middle School
When your children are at the age of the middle school, you can allow them to control their spending. If you give him or her a certain amount of money every week for commuting costs or going out with friends, you should emphasize that if he or she misses out on spending it, he or she has to figure it out on his/her own and parents won’t give you more.
Some high school students can manage spending on a monthly basis, and this will be a great practice for their later college years, especially for students studying abroad or studying far from home. It’s much easier to make mistakes at home than when you’re really away from home.
Teach Your Child To Shop Online
Besides learning about managing money, children also need to know when and where to spend money properly. It is essential for them to keep up with the integrated knowledge and technology. Therefore, starting to get acquainted with e-commerce is needed. That helps them be familiar with shopping online, gain ways to save on online orders with digital coupons and promo codes while giving them the experience to avoid shopping traps and fraud on the Internet.
Teaching children to save money by age isn’t a one-time thing. It starts when your children are little kids, and continues as they get older, and takes practice into a lifestyle habit. The actual application process often generates mistakes, but it is also a lesson. With an age-appropriate way of educating, children will be less naive and more independent as adults.