Most of the children want to spend the money given by their parents and relatives on so many irrelevant things. Teaching the value of money to your kid is also one of the top parenting skills. It’s therefore every parent’s duty to monitor their kid’s spending and teach them few money saving lessons.
So here is the top 10 money saving lessons you need to teach your kid
Discuss Wants vs. Needs
When you start tracking your spending, you’ll discover that you spend some money on things that you really don’t need. Tech you kid the meaning of wants and needs. Needs are the basics things like food, clothing and shelter and want are all other extras. Just because you want something but don’t need it doesn’t mean you can’t buy it. It doesn’t mean that you can’t buy the things that you don’t need, but your wants should take a back seat to the need in the terms of spending.
Savings for Long Term Goal
Teach your kids to save for a long term goals to buy something larger than usual. Saving money for short and long term goals is a skill that all children should learn. It also helps your kid to decide which purchase is more important to them.
There is Joy in Giving
There is lots of way to teach your kid to find the joy in giving rather than getting unusual things. This will make your kid a very kind heart in the earlier stage and know the actual value of money. Teach them about donating toys, food, clothing and books. Before this, choosing where to give is essential. Teach them to give for charity and cause they’re really passionate about so that they can feel the actual joy of giving.
Have a Wish List
Good things come to those who wait. Don’t spend it as soon as you get it. Having a wish list can teach them be patient, choose wisely, understand the difference of wants and needs, saving for their goals, and buy something than usual things.
Work with Your Budget
Discussing a budget with your kids will help them how to plan their spending. Realize them that reducing their expenses can makes goals come faster. You can use your own budget for examples or ask them to create their own budget. Make sure them about not spending more than the budget they create. The budget should be simple and easy so that they don’t grow up by thinking that budgets are hard.
Encourage Them to Track Their Spending
According to a poll conducted by Gallup, approximately two-thirds of the Americans don’t track their spending. This may be usual for them but not for their children. Encouraging your kid to write down everything they purchase and adding them at the last of the week can be an eye-opening experience. This will help them change their spending pattern and teach them how faster they could reach their saving goals.
Offer Savings Incentives
This is usual with even the elders. We only save if company or bank contributes in our savings. Same goes with the kids. You can offer saving incentives to ramp up their efforts. For example if you kid set a big goal of buying something like tablet cost $500 you can offer a match percentage of what they save for their goal. Or you can offer some rewards when your children complete their savings milestones.
Set a Savings Example
Teaching your kids about saving goals can encourage them to limit their extra spending and adding some money to their saving accounts. Teach them how your money can make more money. Open bank account and teaches them about fix deposits and interest rates.
Teach them to Pay Bills
If your kids own cell phone, ask them to pay bills from their monthly budget. If they’ll late in paying bills the service will cut down and they’ll realize the value of saving money for essential things. Some bills your children can pay are cable TV, car (If they are of driving age) Internet and other personal things.
Dangers of debt.
Don’t forget to teach your kid about the dangers of debt like how it can create constant stress and even destroy lives. Educating your kid about debt would result in an improved power of earning. Teach them when did debt become so acceptable and when did we stop fearing it.
Teach these life changing top 10 money saving lessons to your kids and be an example of a good parent.