Children of now a days are so bright that when they see their friends doing something beneficial and easing stress for their parents they would want to belong. As they are growing, they learn different things so it is vital to you as a parent to teach and develop your child at a young age about the positive advantages of saving money and ways to spend them wisely.
Developing a good saving and spending habits in your child helps them to be financially independent at some cost and also prepare them towards the future which can sometimes set your heart at ease as a parent. Implementing this habit in your children will not just help them in the future, it also makes them think greatly on how to be successful and it becomes a habit for them at an adult age.
Early financial setting could be a link to financial freedom. Below will guide you as a parent
1. Open a savings account and buy them a saving box
A 5-6 year's old child is not too young to learn the saving habits. Once your child is at the age of 4years, start bringing up the discussions of saving money and give them the chance the chance to contribute their own opinions. Enlighten them on how saving of money can do so many things for them like buying of big toys so they can be motivated. Build them with this kind of conversation until they age 5years.
At 5years, encourage them with the ideas of saving until they are well convinced and also let them know that an extra cash should be kept safe. Proceed to open a saving account for them and while returning, buy them a baby saving box where they can only put money but have no means to access the cash. Find a way of opening the box by yourself anytime is filled and be able to close it back to save you the stress of buying as many saving box as possible.
Give each of them their own after indicating their names with a chalk or marker. Guide them through the process of putting money only and then give them the space to put it in the house and ensure to monitor it by yourself always.
2. Create an allowance schedule for them
Creating a means of allowance for them doesn't mean that you will start giving them money on a regular basis (No) because it can push them into taking your money unaware just to fill their box, remember they are kids.
Their are several ways of creating allowance for a child without making them feel like they are entitled to some specific amount everyday. These ways are;
* Good Grades Allowance: Good grades allowance should be given to a child when he or she performs well academically. It motivates them to study hard as they already knew that they will get a reward when they pass.
* Errands Allowance: A child is entitled to this phase when they are of help to you in terms of running errands, you should always leave them with a change as an up keep and immediately, instruct them to go and deposit it inside their saving box.
* Neatness Allowance: Sound it like a warning to them not to get theirselves dirty as they play around the house. What them closely after the warning and who ever that obeys should get a reward from you no matter how small so that others can learn.
* Chores Allowance: Even though they aren't up to the stage of handling chores but some children do stay with their mothers in the kitchen even if it is just carrying of plates from one place to another. Appreciate them with tips after this so they can feel special and be eager to do more.
* Visitor's Tips: Often times, visitor's do give the children tips too. Direct and guide them to drop it into their box or you can give them 40% while they save 60%.
All this guide will not just help them to save, it will also develop them morally, academically and intellectually.
3. Refrain from giving them money so easily
A child will always be a child no matter what because their thinking faculty is still very low. Some parents are at the habit of giving their child money anytime they ask for it and this have build most children to be lazy while they grow because they are use to the system and sometimes cause them to look for other means in a bad way if they can't get what they want at the moment.
Even if you are financially stable, avoid giving your child money anytime and any moment they ask for it because it will become part of them forever. While skipping their demands, you should also teach them that money will not always come anytime they want or need it. They should always be prepared to adapt and accept a change.
4. Guide your children about spending (Expenses)
The most important thing to teach your children is expenses. Till date, most adults do not know how to utilize money nor manage their expenses because they grew up creating their own ideas about money, their were neither taught nor guided. Teach your children when an when not to use money, suspending things that are not important for their needs.
When you teach your children about the vital life lesson of expenses, they will be guided all through the days of their lives and ensure to monitor them as they prepare for the expenses ahead of them while they grow up.
5. Expose them to the importance of saving
It is best to let your children know the importance of saving since they have gotten a little means of saving and also teach them the types of savings which are; (personal, retirement and emergency) so they would know which among all they are saving for and ensure to emphasize on the reward for hard work and how savings can help save them from many situations later in the future.
Guiding your children with all these principles will build their mentality towards the future and saving habits will be easier for them to accomplish.
Cautions:
Parents who wants to achieve this aim are expected to lead by example because your children will always copy any attitude you exhibit and that is what will reflect in their attitude. So therefore, show your children that you have a good saving and spending habits and be rest assured that they will emulate you.
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