Today is the eleventh part of afterschoolAE parenting series called “Growth Hack”, and to celebrate the incoming season of gift giving, we are going to discuss how parents can teach their kids to save up money for their future. These are easy to implement tips and tricks that can teach your kids the importance of saving up and thinking ahead of time.
Where is the money coming?
Either you teach your kids to make their own money as early as possible or teach them how to save a portion of the money that you give to them. All kids should learn the value of the hard earned money while they are young.
Giving them chores to complete in exchange of small amount of money is always a good idea in teaching them the value of hard work. For example:
1. I always ask my 5 year old daughter to put her toys in a basket where we keep it after use and keep her bedroom neat and organized. At the end of the week I give her an extra on her allowance for her hard work on keeping her bedroom clean.
2. My 7 year old son is responsible on some simple house chores like putting the used plates on the sink after dinner and feeding our cat every day. For his allowance, I add a dollar or two as a reward for his hard work.
Encouraging kids to save up
Kids need the encouragement from their parent’s in order to learn the value of saving for future. If we parents will just sit out and ignore this one simple fact, we might be too late to teach our kids basics of money.
DIY envelopes and jars – One simple way to encourage your kid is to create a DIY jar or envelope where they can put their money. Family experts suggests that parents should ask their kid to draw his or her goal “to buy” on the jar or envelope. May it be a long term or short term goal, it’s always important that kids know why or to what for they are saving their money.
Save up together – The most overlooked formula on saving up is that it can become a X2 effort. Parents should set an example and save money too. If your kid can save a dollar for the week, we should match it or double it to encourage them further.
Open a bank account (joint or kids club money savers) – To let our kids experience banking on their young age is important on teaching them the basics of money.
Teach your kids the importance of priority – We should never forget to teach our kids how to setup priorities. We can let them make simple financial mistake but it’s always nice if we can remind them the importance of setting goals and priorities.
Saving up money is always a win win situation for everybody. We parents have a responsibility to teach our kids the importance of saving up. We need to pay for this and that in order for our home to function, the greatest way that our kids can help us financially is that they learn the value of a hard earned money and save for tomorrow.