Saturday, October 8, 2011

5 Tips to Teach Your Kids to Save Money

Currently, there are a lot of teenagers that do not understand the important of making and spending money because they were not oriented that financing is necessary although they are still students. As parents, you should be able to explain your kids on how to save money. Your kids should be able to know the concept of money and financing as early as childhood.

There are 5 tips for you to teach your kids on how to save money.

How to teach your kids to save money.
1. Tell your kids the important of saving money. Explain them about its importance and how it will effect to their life. It’s important that you entertain questions from them about the money and you should be able to respond them right away.

2. Kids should be educated of the value of money. When your kids have learned how to count, that is the great time for you to explain them the meaning of money. Maybe you can explain to them in simple ways and do like this regularly so they can remember what you told them. 

3. Start teaching your kids to work for money. You can start this at home. Pay them 0.5 dollar to 1 dollar every time they do housework. Example, you pay them 1 dollar for cleaning their room, washing the dishes or feeding their pets. This concept will make them think that money is something they have to work for and should be used up properly.

4. Encourage your kid to keep certain money for the future. Tell them that the money can be saved and can buy new clothes or the toys if you are able to save the money.

5. Giving them piggy banks. This is also a good way to teach your kids to save money. You can tell them to start putting the money into the piggy banks and wait until they get full. Maybe you can also open bank accounts for your kids and let them deposit money from their allowance. To keep them motivated, you should always show them how much they have earned.

To make your kids understand and know how save money is not made it for one day. You have to be patient in teaching step by step. Kids will learn this guideline from you easily if you are patient in guiding them regularly and encouraging them in this attempt