Six ways to save
Most children are not taught about the importance of saving in school and as a result we often end up having to fend for ourselves as adults when it comes to managing our money! To help your child grow up to understand how essential it is to save, the team at www.onlinemoneyadvisor.co.uk have put together six ways parents can help to make it happen.
Start with a piggy bank
Most of us will have childhood memories of popping loose change into our piggy banks. Although cash seems to be going out of favour, it’s still worth giving your child pocket money that they manage themselves. Also, if you pay them a very small amount for small chores, they’ll be able to see the rewards of their hard work and the need to save towards something they really want. Explain that their goal is to fill up their piggy bank until there’s no more room left, and that once it’s filled they’ll have more money than they perhaps imagined.
Open up a bank account
When children are a little older, take them to a bank to open up their very first savings account. Let them count and hand over the money that they’ll be putting into the account and make sure they see the contents every so often so they see how their stash grows, but also how it shrinks again if you take money out!
Start a conversation about money
In past generations, money was often deemed a taboo which is why many of us don’t know enough about how to manage it. Establish an open communication with your child about how much money they have, encouraging them to save and explaining the drawbacks (as well as the pleasures!) of spending. Make sure they understand the value of money and how to manage it properly, as well as the difference between needing something and wanting something.
Lead by example
It might be worth buying a piggy bank for yourself too, as this shows your child how you save for things you want, encouraging them to do the same. You’ll be saving together, and once both piggy banks are full, you could take a shopping trip together, showing them the rewards of saving.
Teach them to set goals for their savings
Without a goal, saving money when you’re young is no fun. Teach children the value of saving by translating what they want into saving goals. If kids have their heart set on a new toy or gadget, encourage them to put their pocket or birthday money towards it.
Share their excitement
If you show your child that you’re just as excited as they are when they put money away, they’ll be much more likely to keep doing it. Positive reinforcement really works when it comes to finances. Giving praise whenever they set some money aside, even if it’s a small amount, will encourage them to keep on going.