Tips for Teaching a Child How to Save Cash
Every parent wants their children to be successful as they grow up. You can help them accomplish this by teaching them best practices for managing their money. Below, here are some of the best ways you can help your kids learn to save money based on their age.
Teaching Young Children About Money
It’s never too early to start teaching your children about handling money, and there are many easy ways in doing so. For example, instead of a piggy bank, use a clear jar. This way, your child can see the money grow as they continue to add to it or shrink if they choose to buy something. If your child wants to buy an item, like a toy, help them get the money out of the jar and have them give it to the cashier. It’s also very important to set a good example for your kids. Try paying for things with cash instead of credit card while they are watching.
If your children are older in the pre-teenage years, enforce how important it is to earn money. For instance, help your kids save by giving them commissions on chores done well rather than allowances. If they want to purchase an expensive item, such as a new video game, let them know that while they may be able to afford that game, they may not be able to buy something else, like a new pair of shoes. Help them avoid buying impulsively by telling them that they can buy that same item with their own money the next day.
Teaching Teenagers About Money
As your kids reach their teenage years and start getting more freedom in how they spend their cash, it’s very important that you start shifting responsibility onto them. Help them move the money they saved into a bank account. Have them download a budgeting app and help them set up a simple budget.
In addition, talk with them about their future. Are they old enough to get a job? Are they planning to go to college? Steer them towards part-time (or full-time if not in school) opportunities to get that cash flow moving. Encourage them to put some of those earnings into savings or a college fund. Also, teach them how to properly manage a credit card to avoid debt.
Finally, don’t forget to teach your teens to be content with what they have. For example, if they own an old car and want to buy a new one, remind them that while it may not be the nicest one on the street, it is in working condition and has been reliably getting them from point A to point B. Remind them that owning this cheaper car is saving them lots of money to spend on other things.
[ OKCarz Blog ]