3 Tips to teach children to save money
Published 07/22/2021
If your children learn to save money, they will be able to manage their resources, take care of what they have to understand that money is not unlimited.
This will save them a lot of bad times when they grow up and have to take responsibility for their finances.
An ideal way for children to understand how to be financially responsible is with concrete practices. They must also understand when they are doing wrong about money and know their limits and benefits.
If they already understood the value of money, the second step is to show them the importance of saving. What should they save for? How should they do it? Here we give you 3 tips to teach the value of saving to children:
1. Teach them to divide their money
If your children are starting to internalize the value of money, they will also have to learn that spending and saving are completely different things. To cover both items they will have to divide the money they receive, this is to correctly manage their resources.
Expenses include all of those things that they have to pay for in the month (or week, it all depends on the frequency with which you give them money) and the savings are associated with objectives that they cannot access immediately. For this task, you will need effort, perseverance, and patience.
2. Help them set goals
Is there something your son longs for that he can achieve by saving? What he or she wants so much can be an excellent incentive to save. It will have a specific objective, achievable and with short-term results. This will familiarize you with concepts such as planning and investing.
Before buying everything he wants, give him the possibility of getting things thanks to his own efforts. We assure you that when he succeeds, he will value it even more. Also, you will learn to discriminate between things you really want and whims of the moment.
The idea of having a clear goal of saving is that they understand why they must not use that money in the minute; that is, there is a greater good.
3. Show them options to save
Although it may seem like an old-fashioned technique, the piggy bank will always be a good way to save money. Especially for young children, because it is an accessible alternative and allows them to constantly check how much the initial sum has grown. They can even put on it a drawing or photo of the goal so you nor them forget why they are making the effort. On the other hand, the only financial instrument that a child under 12 can use is a savings account. However, it is an excellent idea that from an early age at least they know that there are several alternatives. For example, when they are over 12 years old they can access the sight account or additional card.
In the case of the savings account - an option that almost all banking institutions offer - the initial amount to open it fluctuates between $ 50 and $ 100. The procedure is very simple, but, since they are minors, they must always be requested by the parents or legal representatives. They must present their identity card and birth certificate.
It is important that they understand that the savings account has commissions and interests that vary according to the bank they choose.
It is never too late for them to learn
The habit of saving is not something as common as it is thought. But if you want your children to become responsible adults with their finances and who can project themselves, start by teaching personal finance to your children from a young age.
At El Paisa Multiservices we want to help you with your financial movements. You can contact us if you have questions about our services.
By Ingenuity & Solutions
