Saving money is an important life skill and one that you can start to encourage kids to understand much earlier than you may think. Helping children to learn about spending and saving money is an excellent way of preparing them for life ahead, as well as encouraging them to appreciate and value the world around them more deeply.
Learning about money doesn’t have to be challenging or scary. So, here are some simple ways that you can start to bring the subject into focus.
Help them understand priorities
One of the most important parts of saving and budgeting effectively is knowing the difference between what you may want to spend on and what you need to prioritize first. This difference is also a good lesson in understanding self-discipline and control. Some useful ways of helping kids understand priorities can include setting limits and boundaries and talking about what they mean, as well as explaining the benefits that can come by planning ahead.
It’s also essential that adults model this behavior for kids too. Setting up a financial budget of your own, and talking about what it means for you is a great way to encourage your kids to understand its importance.
Encourage them to earn and spend their own money
Earning your own money, and making decisions about how you choose to spend it is one of the best ways of learning how to make better financial decisions. You can reward kids by paying them an agreed rate for chores and other household tasks. This will help them understand the importance of their effort and hard work and also teach them the value of their hard-earned money when they buy something with it.
Help them save in a practical way
Encouraging children to save their own money will help them become more financially empowered, and establish healthy foundations for the future. You may want to look at savings sites where you can find promo codes and discounts on everyday purchases together before buying something. Home Depot coupons are great for saving money on everyday appliances that would otherwise cost an arm and a leg.
You can also help your kids set up goals to save up for, such as a trip, game, or new toy they may want. By encouraging them to save up for a major reward, they can learn how to set aside money they’ve earned, and budget their spending in a manageable way.
Create a visual timeline
Younger children can struggle with the concept of time, and it can be confusing to plan ahead for things in the future when it’s hard to know what that means. A great way of bringing this to life in an easy to understand format is by creating a visual timeline. You might want to create a simple wall chart, where kids can mark off milestones towards their goal, or set up a savings jar, where they can see their cash begin to add up. A visual reminder also makes the idea of saving up much more tangible and real, helping them to understand that they really are making a difference to their lives.<! –INFOLINKS_ON–>
