Parents aren’t doing a good job of talking with their kids about money. They are more likely to talk to their children about having good morality and getting good grades than they are about having good savings habits. However, current situation of global economic in the past few years have prompted many parents to become more interested in teaching kids about money management.
Set a Good Example
One of the best things you can do is let your child see that you save money too. Put money in a piggy bank while your children are watching and tell them it’s your savings. This will show your children that saving is normal. In addition, since most young children want to be like their parents, seeing you do it will provide them with money lessons that further inspire them to save.
Make Smart Shopping
Responsible shopping is an important life skill. You can help your kids by talking about what products you choose to buy, where you choose to buy, and how you make decisions. For example, you should show your children to investigate the products on the internet or ask a sale assistant. The more information you have, the better decision you make. Plus, put a limit on how much you’re going to spend. This helps you teach your kids that there’s a limited supply of money and that you have to buy accordingly.
Reward for Successful Saving
Over time, kids may lose interest in saving their money or become depressed when they want something they can’t yet afford. To keep children motivated about saving their money, parents should reward their efforts. For example, if your kids don’t spend any money for a certain amount of time, provide a small reward such as stickers, toy, or extra hours to watch TV. You can also make the prizes better the longer your child saves.
Talk About Giving
Kids should learn that money doesn’t always need to be used for them. It can be used for others. For example, take them to charity events and get them involved in the process. Or, you can set up a charity box at home which the whole family can contribute to. Then, you can let your kids see you drop money into charity boxes and encourage them to do the same – then decide together how to use the money.