It’s never to soon to teach your kids how to save! In fact, the sooner you teach them how to save the better they will be at learning how to manage their money in the future. If they start early saving, they will understand the value of money and how much can be accumulated over time by saving.
How should I start teaching my child how to save? A good way to start is to follow some of these tips to assist you with helping your child to save:
1. Give your child an allowance which will provide your child with money that they can manage. Encourage your child to save a least half of their allowance.
2. Show your kid how much interest they can earn over time on their money when they save it! Especially the power of compound interest.
3. By saving money today, your kids would have money saved, for a future purchase they might want to make.
4. Make saving fun for your kid. Have your child put their savings in a piggy bank or jar so they can watch their money grow.
5. Open a bank account for your kid and let them deposit money from their allowance or other monies received into their bank account.
You say this is all good information, however, you’re unable to give your kids an allowance because you just don’t have enough money. What should I do, I really want my child to learn how to save? Don’t fret, they can still save! You can have them save by collecting bottles and cans to earn money so they can start saving. No matter, how much money your kids earn, every amount adds up!
So, it seems easy, It really is! Get your kids into the habit of saving today, so they will learn how to manage their finances now and for the future.