When I was a child, my mother restricted my access to money. In those days, some relatives would offer money to me if they forget to bring any gift while visiting us. The reason behind it is, I was the youngest member of the family. In such instances, my mother would boldly say no.
Today with changing times when the kids have become more self-dependent, I find it important to encourage money-saving habits in kids.
Not that I hand over money to her or I encourage others to do so. But, we as parents have chalked down some house rules to encourage money saving habits. We have also included our kid in our plan.
Why should you encourage your child to save money?
Certainly, most kids do not value their belongings. Today the world has been a tough place to survive, we can expect it to be challenging when our kids will become adults.
As we say, what we teach our kids at an early age, remains with them forever. Exactly in the same way, if we inculcate money-saving habits in kids at a young age, it will prove to be a golden rule in the long run.
However, there are numerous advantages of money saving habits in kids.
1. Understand the value of money
For kids, everything we buy, just happens with the swipe of a card. They don’t see actual money and think anyone swipes a card can buy things. Making them understand that money is something we need, for buying materials, it will be helpful.
2. Avoid misuse of money
When they know, that things are bought with money that we earn, kids will probably lessen the misuse of things, such as toys and other unnecessary things.
It has been my personal experience that the time from when we have started adopting the money-saving habits with my kid, she has stopped over-buying things.
She has started judging things by whether she needs it or not. Of course, there are instances when she craves things like toys. But as long as they are kids, that will be there.
3. Save for a good reason
You can make them understand that there are special moments in life for which we save. This will give them an idea of fund distribution. For example, we save for our health, vacations, charity, etc.
4. Implement future planning
As you teach your kid the importance to save for a cause, they will also learn how to plan for future expenses or occasions. This will help her to take important investment decisions in the future.
5. A lifelong lesson
Like any other good habit, saving money will also help your child in the long run. They will learn the importance of saving money at a young age and thus implement it throughout their life.
6. Understanding family values
Every family has a goal and perspective towards life. Savings in one aspect of learning family values. For example, if tomorrow your child demands a good sum of money to eat out with her friends, will you allow her? Well, it varies from person to person. Personally, I will raise my kid in a way where she understands whether spending a good sum of money with friends at a young age is obvious or not.
7. Encourage bonding with the child
As I said earlier, kids think money comes from the swipe of a card. Make them understand that it is the result of your hard work. That way you will grow a bond between the child and the parents.
How I encourage my child to save money?
I use a lot of techniques in my everyday life to encourage money-saving habits in my child. Here are a few tricks that can help you do the same.
. Piggy bank helps
Kids love adventure. For them putting the money in a little space and see it disappear in the dark is nothing less than an adventure. At first, start with this. You will see that your kid will ask for money to drop in her piggy bank.
. Make her responsible, to save for a cause
When your kid frequently starts asking for things, ask them to save to buy it later. This will help them understand the worth and the hard work behind the purchase. My daughter is comparatively decreasing her regular demands.
. Ask her help at times
We as parents may not need financial help from our young kids, but sometimes showing that you in need, helps. For example, if you let your child buy his next happy meal from McDonald’s from his savings, he will feel independent and self-motivated.
. Plan your spendings
Planning really helps. Many times I ask my child what she wants to do with the money she is saving. Though I get weird answers, at the end of the day we have to admit they are kids. I also tell her that when her piggy bank is full we will buy her the favorite things with the money and also help her with opening a bank account.
However, banks offering minor savings accounts should also be explored. Look out for one of the most trusted brands for banking in India here SBI Savings Account for
Not every time we need to be strict or boss our kids around. But a mother understands when and how to inculcate good habits in her child.
Happy reading mommies, and if you really think, reading this blog has helped you, then please share your views in the below comment section.
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