As parents, we want to provide our kids with the best life skills possible, and financial literacy is one of those talents. In addition to preparing children for future financial success, teaching them how to save money encourages independence and a sense of responsibility from a young age. As everyone knows, the ideal course of action is to start teaching as young as possible and instil little details in their thoughts. However, how can we pull this off successfully? Though there are a lot of approaches to educating children about money, some are more popular than others. How you teach your children will all depend on personal preference, yet, having a starting point helps assist the process. Therefore, below are three simple methods to teach your children how to save money.Start Using a Savings JarIt’s your choice as to when you start teaching your kids how to save. Some families like to begin very early; this may be around nursery or preschool age, whereas others may leave it a little longer. One way you could start is by giving your child a clear jar with the title “Savings,” where they may put any money they get. This is an easy and efficient way for them to visually see the jar filling up. Together, decorate the jar and decide on savings objectives, such as saving for a special treat or a toy, to make it an enjoyable hobby. Their funds will increase over time, teaching them the value of perseverance. Therefore, hopefully, they will want to carry on saving in the future.Leading by ExampleAs we know, many behaviours are inherited. Since kids pick up on their parent’s behaviour, setting an example for them when it comes to saving money is essential. Engage your children in family conversations about setting aside money for different things like food, holidays, or just general new purchases. Allowing them to witness your careful budgeting, bargain-hunting, and comparison shopping will show them how they should be managing money in the future. They are more likely to adopt mindful financial practices themselves when they observe them in action.The Share, Spend and Save JarsYou can offer a more structured way to save as your children get older and develop the ability to divulge more information and have a deeper understanding of money. A common practice is to divide their allowance into three categories: share, spend, and save. Partially divide their money among the jars, putting most of it in the savings jar. By doing this you are encouraging kids to save for more ambitious, important purchases and use the spending jar for smaller, more urgent ones. Finally, the share jar will help children learn the value of giving back. This approach closely resembles the adult system of needs, wants, and savings, which is a well-liked and successful approach to budgeting. Introducing this type of money management into your child’s life at an early age will help them learn how to manage money as well as understand the concept.Early financial education helps avoid the unpleasant consequences of bad money management. Debt is far more widespread than most of us would like to think. Your children will therefore have an edge if you teach them good money management techniques. But since mistakes happen to everyone, you may require some emergency cash throughout your life. Here at BingoLoans, we can help. Click here to learn more about payday loans.
