Four Practical and Effective Ways to Teach Kids How to Save
Ages one through six-years-old is the perfect time to teach your kids about money. Teaching them in their formative years about the value of money and how to save effectively will definitely build a strong financial foundation for them. If you’re going to impart lasting wisdom and knowledge to your kids, it might as well be about managing their personal finances.
1) Be intentional. Decide that it’s something you want to teach your kids in the long run. This means you have to plan it out and follow through with your goals. If you truly see the value of what you want to teach your kids, you wouldn’t give up or stop. It’s best to start teaching them about money while you can still influence them. Once your time is up (teenage years), you and your kids might come to regret it.
2) Make it fun. Most people hate math because it’s “boring.” Don’t let your kids feel the same thing just because saving money involves numbers! The only way to make your kids love saving is by teaching them how it could be so much fun.
- Books: Who says reading a bedtime story always has to be about fairy tales or your horrible recollections of that embarrassing experience you had when you were 12? You can inspire your kids to save through books that teach them the value of saving money instead. Try the books Dolly Parton’s A Coat of Many Colors, or The Berenstain Bear’s Trouble with Money by Stan Berenstain.
- Toys: You can buy cash teller machines or cute piggy banks to encourage them that saving money can be a lively and fun thing to do. Play games with your kids. Add little colorful piggy banks at every corner of the house and tell them it’s a challenge to “feed” your house pigs coins to keep them healthy. The possibilities are endless.
- Shows: Expose them to television shows that show how important money is, like Cha-Ching in Cartoon Network. You can search for other resources online.
- Apps: Do you know a kid who hasn’t played a touch-screen app yet? Kids are definitely regular users of smartphones and tablets, and like you, they deserve apps that encourage the better use of money. Download apps: Life Quest, Kids Money or Virtual Piggy.
3) Trust them. Your kids will love it if you treat them like adults. Trusting them with money and believing that they will do good with it will boost their confidence. This way, you’re effectively showing them they’re more than capable of handling and managing money. Try to be their “savings buddy” saving. Give them challenges or ask them for “help,” anything that would make you and your kids save for something. If you all reach your common goals, then your kids will definitely be more motivated in saving money. Don’t forget to be encouraging and supportive all the time.
4) Finally, practice what you preach. If you constantly teach your kids about saving money and yet they see you indulging in a ton of unnecessary things, you might as well give up on raising money-savvy children. Kids are the best copycats. They look up to you. Mommy and Daddy are their first superheroes and idols, and it’s only natural for them to follow whatever you’ll do — the good things … and the bad. So always be cautious around your children because, most times, they’ll follow your example — even when you don’t want them to.
Your children’s financial success depends on you! The earlier you start teaching them about savings, the better off your kids will be in the future!
About the Author
Jep Barroga is a freelance writer and blogger for MoneyHero, a Hong Kong based finance portal that provide unbiased information on loans, credit cards, and other financial products. Jep will be sharing more information about teaching kids to save money next week. He will share with us his favorite apps to use to make it a fun and memorable experience.