Four Ways To Help Your Children Save Money
It is safe to say that many people develop their spending habits as young adults or even children. Someone that was always given an allowance to spend right away on toys, for example, may have a hard time not spending money immediately when they are in college. While these habits may not cause alarm during adolescence, it can create serious issues later as financial responsibilities accumulate with age. Therefore, consider some of these pointers to help your children save money and learn good spending habits at an early age.
1. Create a savings account - No matter how old your child is, you can make a savings account of some sort. You can open a real account at a bank for older children, or have a homemade savings out at your house, even in a drawer or shoe box. Encourage your children to put some of the money they earn into the savings account.
2. Set a good example when shopping - When you are out with your child, think about what you are buying and if you are setting a good example. If you are buying everything that you want, a child might not understand how you are saving any of your money and why they cannot buy everything they want too.
3. Help plan goals - Encourage your children to have a goal in mind for how much they are going to save. Consider creating incentives for them to save their own money. For example, once they reach the goal, you can match half of what they save.
4. Explain budgets - Kids do not usually know what it means to budget.Explain the concept and how you work to save your money. Help them set priorities. If they want money for the ice cream truck each week, tell the to save so that it's always within their budgets.
