One of the most crucial parts of accumulating wealth and establishing a solid financial foundation is saving money. Many of us, on the other hand, have learned the value of conserving money via trial and error, and, more significantly, experience.
We aren't taught about the significance of saving in school, and many of us are left to fend for ourselves as adults.
You want the most for your children as a parent. This does not imply that you want children to have the most fashionable clothes, the most up-to-date toys, or the coolest gadgets. Most likely, you wish to keep them safe and secure. You also want to provide a foundation for them to build on in order for them to succeed in life. The question is whether you're teaching your children a critical lesson that will affect their ability to succeed. This is a lesson about money. Here are a few things you can do to help your children grasp the notion of money:
A PIGGY BANK IS A GOOD PLACE TO BEGIN.
A piggy bank is a terrific method to educate your children the value of saving while also providing them with a simple means to do it. Tell your children that the goal is to fill the piggy bank with money and coins until there is no more space. Demonstrate how the piggy bank is used to save money for the future and how the more they save, the more their money grows.
OPEN AN ACCOUNT WITH A BANK
Take your child to the bank after the piggy bank is full to start a savings account for them. Allow them to count the amount of money that will be deposited so that they may get a physical sense of how much money they have. Reiterate the concept of interest by showing them the final number.
If your children realise that their money will grow over time if they don't touch it, it can be a terrific source of encouragement for them.
SAVINGS JARS CAN BE USED
Tell your kids that if they really want the newest item or a new action figure, they'll have to save up for it. Give them a jar for each of their chosen purchases and a weekly stipend in a denomination that motivates them to save.
For instance, if you give your child Rs.500 every week, divide it into 100 Rupees bills. They can either save all of their money for one purchase or contribute to numerous "jars" for different savings goals. Put a picture of their desired toy or item on the jar to encourage them to save for their short-term goals. This will serve as a visual reminder of what they are working toward.
MAKE MONEY-MAKING OPPORTUNITIES
Kids need their own money to learn how to manage it and make decisions about how to spend it. Allowances can help with this. You should, however, consider ordering your children to perform some duties in order to earn their allowance.
ARE YOU PAYING BILLS ONLINE? INCLUDE THE KIDS IN THE PROCESS.
Keeping track of your finances and paying your obligations can be a challenge. Bring your child in to lighten the atmosphere. They will grasp the notion of budgeting and bill repayment in this manner.
GIVE CASH FOR BIRTHDAYS SO THEY CAN MAKE DECISIONS BASED ON THEIR BUDGET.
Consider giving kids money instead of gifts on birthdays and other occasions where providing things is the norm. This not only saves you time while shopping, but it also teaches your children how to do math and be resourceful.