You may think that your kids are still too young to learn how to save money, but they are never too young to start teaching money saving tips for kids. It is best to start teaching them the importance of saving money as early as possible. When they are little, they absorb everything like a sponge. It is a great time to start since they have not yet developed any bad spending habits that will need to be broken, so the younger the better.
As your kids grow, it will be something that comes naturally to them because it will already be a regular part of their lives.They will be financially responsible and less likely to be in debt as adults if they are taught good spending habits early. If you are not sure what advice to start giving, here are 5 money saving tips for kids.
Money Saving Tips for Kids:
1. Have your child set a goal. Do they want to buy a bike or an iPod? Are they saving up for something special? Have them decide what they are saving for and how much money they need to save to reach their goal. This will help teach your kids about how to achieve goals and how much money is needed for them to get the reward.
2. Give your child an allowance or pay them for doing certain chores or jobs around the house. Then help them decide how much of their income is going to be saved and how much is going to be spent. You can give them a piggy bank for savings and a wallet for spending money. This is a perfect way to teach them how to save money. When they are given money for a certain occasion you can teach them to save a portion of it each time.
3. Teach them ways to avoid temptation. If they are thinking of going to the mall or a fast food place with friends, suggest a bike ride or going to the park instead. Give them fun ideas that do not cost any money. If they have to spend money teach them the concept of shopping for a bargain.
4. Tempting places are not always avoidable. Talk to your kids about needs vs. wants and learning how to say “no” to themselves sometimes. Explain to them that reaching their goal may mean sacrificing some things that they want but really do not need. If your child is still young they may not comprehend this concept, but you can still focus on the idea of saying not getting a new toy or candy every time they are at the store.
5. Discuss ways to earn more money. Ask neighbors or family members if they have any “jobs” that your child can do to earn some extra money. Maybe a neighbor needs help raking leaves or walking their dog. The more they earn, the more they can save.
You want to help your child save money and the best way to do that is to teach them ways to make money, ways to save money, and ways to avoid spending unnecessary money. Once they have the general idea it will be a learning process. They will make mistakes along the way. Support them and show them how that mistake is now a lesson learned. These money saving tips can help pave the way for the financial future.
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