How To Teach Your Child Save Money
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Home, being the first school, teaches the very basics of everything about life. It is where the foundation should be well-observed because it is also the place that molds the budding mind of an individual.
Parents or guardians, as the first teachers, should be critical enough in selecting between what and what not to teach.
One very good example is on the matter of financial literacy to young children.
Never have I known any school that includes a subject or course in their curriculum about MONEY.
Having said this, parents should take into account teaching the youth about finances at its simplest and practical form for their easy understanding.
Here are my 10 basic tips to effectively teach your children about money:
1. Be a role model.
Children easily imitate what they see and hear from people they look up to. As parents/guardians, be mindful of every word and action because children are watching you, both consciously and subconsciously.
2. Talk as a family.
It is good to talk about topics or issues as a family in your kitchen table, like simple viewpoints about money and saving. Young minds easily absorb basic thoughts upon constant exposure.
3. Teach simplicity.
Implementation from the very beginning is the key. Seriously to adhere to your teachings and true enough, children will live by them to avoid the “buy this and buy that” attitude.
4. Show the value of money.
Kids see money as an object used in exchange for something, but they have to be guided that it’s not always permissible to have this little object exchanged for everything.
5. Give incentives.
Make them do simple tasks at home and give monetary incentives in return to keep them motivated.
6. Do the “Fill-Up-the-Piggy” contest.
Make them fill their piggy banks the fastest and reward them in exchange for a job well done! Children always love a treat.
7. Engage them.
Invite your children to get involved in some of your financial journey. Share your reading materials, books, newsletters, etc. Be open to their questions and answer them from the heart. Connect to them at their innocent level. It is the perfect time to fill their still-evolving minds with information that will shape them for years to come.
8. Borrow money from them.
Children often times show responsible ownership. They treasure every little thing they know is theirs. Like for instance, toys; they make sure that the set is complete up to the last tiniest piece. The same is true with money. Borrow a portion or any amount from them because they will for sure treat money just the same with their toys or anything that belongs to them.
9. Teach the “Hard Work Pays” attitude.
Encourage them to strive more and explore their potentials. CAUTION – Refrain from complaining about money because this will give them the impression that hard work does not pay. Make them understand that whatever the amount is planted is the same amount harvested.
10. Open bank accounts in their names.
With parents’/guardians’ supervision, open accounts for them. The small passbooks or ATMs with their names on them will generate a higher self-esteem and a sense of pride and independence. This will make them more encouraged to save.
Let the little minds be educated with vital things like financial nourishment towards becoming responsible and more mature individuals.
They deserve the best things in life. It is in our good teachings that we will make them remarkably equipped as they grow.
What parents have taught and will teach can greatly affect children on what they will become in the future.
Give them the best ingredients, so that they can cook the best recipes!
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