For many parents, the thought of teaching your kids to save can be quite daunting. There is a lot of value in teaching your kids to save from an early age. The importance of saving needs to be stressed from an early age, so that children have a healthy relationship with money and savings tools. The sooner they become familiar with savings options, the better. The earlier you teach your kids to save, the better.
Kids can start the process of understanding money at an early age. For instance, a three or four year old can begin to understand basic concepts of money management when they are introduced through games or an activity they understand.
It’s important to start having conversations about money as soon as possible and as often as possible.
How to teach your kids to save:
Involve the kids when you’re sitting down to pay your bills online. Make it simple for your kids to understand why it’s important to pay bills on time and how to pay online in order to save time and money.
Give your kids and allowance and encourage them to manage it properly. One of the easiest ways to teach your kids to save is by giving them their own money to handle. You can then guide them by encouraging them to save as much as possible. It’s important to introduce the concepts of needs versus wants. You can even encourage them to save by matching their savings.
Play money games with them, like Monopoly. These types of games offer convenient ways to teach valuable money skills.
For younger children, use play money and a toy cash register to introduce money concept. A piggy bank also remains a popular way of teaching your kids to save.
Make everyday shopping excursions a learning tool. When shopping you need to compare prices so that you can show your kids how to save more.