Teaching your kids how to spend and save money smartly means you are also preparing them for a brighter and secure future. Empower your child today by eaching him or her the art of saving.
Check out these 7 smart tips on how to teach your kids about saving money:
Show your kids how to spend within their means:
Spending within one’s means can save you from running broke and also borrowing. You can teach your kids not to spend more than they earn, or not to spend above what they earn. For example; your daughter’s monthly allowance is more than enough to buy an IPhone and she walks up to you asking if you could buy the phone. You can respond by saying “Can you afford the monthly bill? She’ll definitely drop the idea of purchasing the phone. Teaching your son or daughter the essence of spending within their means is another way you can control his or her spending habits. It also helps in ensuring they see the bigger picture behind any purchase, deal or project.
Let kids make their own purchasing mistakes:
Humans naturally learn from mistakes. Allow your kids learn from their won purchasing mistakes and they won’t make that same mistake again. Your son might just want to purchase a toy he wouldn’t be playing with often; you can as well let it slide. Let him buy the toy even if he would soon get tired of it in no time. This in turn will teach him a lesson for future purchase because next time he’ll want to get the exact value back for his money and it will also teach him to save his money next time.
Take them shopping with you:
Because children learn faster nowadays, be sure they’ll also look out for those discounts you are always looking for. Their cognition will be geared towards saving extra whenever they want to make any purchase because they know they can always get discounts. This technique can teach your child how to make reasonable purchases without actually spending extravagantly when he can get it for cheap.
Encourage them to set goals:
You’ll have to encourage your child to set goals for him or herself. Its not everything your child asks for that you give. Make some exemptions by having him or her save to purchase toys he or she wants at times. Help him/her set goals on how he or she will save to get there and keep encouraging him for better results.
Get him or her a piggy bank:
Get a piggy bank for your kid as this will serve as her own mini bank. Your child can as well watch his or her money grow from scratch to something significant. Once he or she has something tangible he or she’ll have to save it in her piggy bank. Trust me, they are so excited about these banks and they will save every kobo they have in it.
Skip TV advertising:
It is said that advertising even during kids program can be relentless and even disturbing. Keep your kids away from TV ads, but you can let them watch commercial free TV programmes instead.
Don’t be afraid to negotiate:
Let’s say your child wants you to get him a new phone why don’t you both meet at the middle. Have him or her save half of the money while you give him or her the other half. Negotiate with your child mainly for the purpose of reaching a consensus both parties will benefit from.
Some Nigerian banks have specialised accounts for kids, you can as well save for your kids in these banks. These accounts include;
Early Savers Account: Access Bank
Cool-Teen Account- Diamond Bank
SWEETA ACCOUNT-Fidelity Bank
First Bank Kids First-First Bank
Classic Savings Account-FCMB
Smart Kids Save: GTBank
Bud Savings Account: Heritage Bank
Skye Rainbow Savings Account: Skye Bank