Studies have shown that only 1 % of children who receive pocket save a portion of it. This is a frightening statistic if one considers that how easy it is to teach young children how to save money. As a parent, you can help teach your children the value of saving money and why it is important.
Children are avid learners
Children learn by mimicking and by example. As a parent, you are your child’s primary educator. You are your kids’ most important and visible role model. They notice how you speak to people, how you treat people and they also notice how you handle money. It’s your responsibility to teach your children the value of money and how to take care of it. When you are buying the weekly groceries, and are comparing the prices of products, they will notice what you are doing. As a parent, you can take the time to explain what it is that you are doing. You could provide a savings jar – a piggy bank. Each time your child receives money, be it pocket money or a birthday gift, encourage him to put the money away in the piggy bank. When the jar is full, accompany him to the bank and open up a savings account in his name. Let your children do chores, and receive pocket money for the ‘work’ they have completed. By encouraging children to complete their chores in order to receive their pocket money, they will learn the value of being rewarded for their efforts. Show children that things do cost money. Let him take a few rand with to the shops and let him buy the item he wants. This is also an opportunity for him to learn about opportunity cost, where he learns to weigh decisions and understand the possible outcomes.
Give your children a head start
Learning how to save money has no age limit. As a parent, you can give your child the head start to learn about money, how to save it and help him be successful with handling money from their younger years to adulthood.
Speak to One Debt today for more money saving ideas for kids.