If you take care of money, money will take care of you. This is the very simple and basic thing that was taught to us by our elders. Many of us have forgotten this as we know many comforts and luxuries come at a price and in order to give a comfortable and good upbringing, we forgot to teach this to our kids. We only understand the importance of money when we see someone who does not have it or is struggling to manage life with the limited amount they do. There is no end to buying things but when money becomes an issue in paying for daily things, it is a problem. Saving money and its proper management are indeed good practices. Money can make your financial state stable, it can ensure good health to a large extent, and it can also bring you happiness. Without money, one can merely survive in this world. This is the thing every parent should educate their child when teaching fundamental things of life. Young children learn faster than adults. They have a very active brain, with more efficient nerve cells, which is rarely seen in an adult.
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How to teach your kid to save money?
Pictorial education
Kids in the age group of 4 to 7 years of age can understand better if you teach them by pictorial representation. They don’t have the brain to understand theories. You can show them pictures of money, money with car house and a man with proper dress and in another picture you can show them a beggar without money. From this, they can understand the value of money.
Piggy bank/ a glass jar technique
This is a very effective method to make your child aware of savings. Every day give your child a coin and tell him to drop inside the clean jar or piggy bank. By the end of every week make him count all the coins those were saved in a week time. Then after counting explain to them how money grows if you save some every day. They will get encouraged by this method and they can learn the value of saving money.
Open a bank account
When your kid’s piggy bank gets full, then take them to the bank and open an account on behalf of them. Tell them how money generates money in the bank. Every month make sure that you update the statement in the account passbook. Show the credited interest to your kid. Guide them to maintain the continuity in this process.
Budget management
Fix an amount that you will give your child as his/her pocket money. Whatever necessities they face over the month, they have to manage within that given pocket money. If in the first month they may face a shortage of money, but then let them face that. Let them learn to compromise. In this way, they will understand the difference between the needs and wants. Help them to list out the things they actually need and guide them on how to manage within that given budget.
Give targets
Once in a year give your kids target and timeline to save money. For example, you give a month or two to save a certain amount of money for which they will get a reward also. Then they start saving more than spending. In this way, they will unknowingly develop a habit of saving money. Rewards also give a boost to this learning process.
Teach them to do charity
Teach your kid about doing charity. Charity begins at home, so show him how you save money to help the house helps. He will save money and buy gifts for them or even for family members. If such nature continues then he will understand the importance of money in the weaker sections of the society and this will help him build a good human being also.
Investing in Education
Once in a year draw some money from his savings and pay on behalf of his monthly school fees. Let him do so. Encourage him to pay some medical bills of your elder family members also. Teach him how these small savings can contribute towards a big cause
Never ever think it is too early to teach your child about the value of money. There is no such ideal age to define. Whenever you feel that your kid is getting matured to understand things, start educating him. If an early age he learns the money management skill, then he will be able to handle all the financial challenges in his adulthood. This knowledge will help him to lead a successful, healthy and prosperous life.
