Saving habits in kids – How to develop it in early childhood days?
It’s common in almost all middleclass families. If you take kids for a shopping, your monthly budget goes in air as fumes without leaving any traces. When you enter a shop, he wants to purchase everything, and feels that all are very much essential. If parents ignore his needs, the whole supermarket may witness some dramatic moments, which prompts parents to purchase a few things, though unnecessary. But in most cases, his fascination to that toy will end in two days.
So, was it necessary to spend your hard earned money for something which could have been avoided? Better option is to teach kids from young, the importance of money and savings and how significant is it for your daily life. If you go through these few points, you can make your kids, ‘Money smart’.
1. Parents – the first chapter of every kid’s life since he born on this earth. Either it’s costly watch or a 5-rupee pen, handle money with extra care. Every commodity owns a price relative of its size – child learns such an important lesson observing you people.
2. Never waste food, water or electricity. While showing and advising such things, make them understand as well.
3. If you tell them that, money is hard earned, and hence for better tomorrow a little amount is to be saved his child mind may not understand it clearly. If your son is a teenager, nothing to say more! He dislikes it most. Best alternative is to take kids along with you, when you set your monthly bills like electricity, grocery, water etc.
4. While preparing family budget, pre-decide and allocate an amount that’s required for your kids’ expenses. You can tell them about the amount and that parents won’t fulfill their needs beyond the amount allocated for them.
5. While allocating his amount in the family budget, you should know his mind also. Never take an approach to fully neglect your kids’ desires to buy something.
6. You can also give them a fixed amount every month for their expenses. For elder kids, you can transfer money to their accounts. While taking kids for shopping, you can use this amount for their purchases. Never allow them to spend money for their desires. Teach them how to purchase things according to their needs.
7. How to teach him, whether a particular commodity is to be purchased or not? Easy method is to ask him to prepare the budget. Since young, you can develop a habit in a child to categorize money to spending, savings and deposits. If he wants to buy an expensive play station, ask him to allocate a little amount from his budget for this purpose.
8. If he succeeds to save some money every month than what’s he asked to, you can encourage him by giving a special allowance. If so, it encourages him to develop a saving habit. Similar to a bank interest to saving account, you can give a special interest his savings too.
9. You can also teach him to spare a little amount of his savings to help some poor or needy. Let him learn that money is important to all and someone needs his help as well. He owes something to the society he lives. Isn’t it?
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