It is never too early to teach kids how to save for their future. If you teach your kids the value of money at an early stage, they will carry that with them as they grow older and they will be safe and secure financially. It is not enough that you save for your kids. You should teach them why it is important and how to properly do it. By doing the simple tips below, you can teach your kids how to save pennies for the future.
Use piggy banks or jars
Give your kids piggy banks or jars and have them draw what they want for themselves on a piece of paper that you attach to the jar. This will teach them about how to save for something that they want. It is best to teach kids at an early age that they need to work hard for something that they want to buy. Using the piggy bank system is a good start. Explain to them that it may take a long time before they can have the thing that they want. They can allocate part of their allowance and put it inside the piggy banks.
Segregate their money
This is another jar system that could help your kids save. Get three jars and label them as “Sharing,” “Spending,” and “Saving.” Every time you give your kid an allowance or whenever they receive money as presents or rewards, ask them to divide the amount among the three jars. This system will allow your child to know their priorities when it comes to saving and spending.
Create a savings chart
It is easier to achieve something if you set a goal for it. Create a savings chart for your kid and add an item at the top of the chart. Every week, make it a point to check how much your kid has saved. Help your kid to see how long it would take to save up for the item. Add checkboxes to the chart for certain amounts achieved. Keeping track of the savings is one of the ways you can encourage your kid to save.
Let them make mistakes
One of the best teachers is experience, which is why you have to let your kid make mistakes when it comes to handling money. Let them make their own decisions when it comes to spending, but there with them to guide them and teach them where they went wrong. By having mistakes, they will make wiser choices the next time and will think before they spend.
These are some of the simple ways on how you can help your kids save pennies for the future. The best way to teach them is to lead by example. Show them how to save and they will follow your lead. Make saving fun for the children and they will learn more quickly. If you teach them while they are young, they will bring the values with them until they are old enough to make bigger investments such as learning to drive, buying a car or a house.