Good financial habits are learned at a young age. The younger your children start learning about money and finances, the more successful they will be in financial management as an adult. There are a number of ways you can help your child learn how to save.
One of the hardest things to learn when it comes to money is that you can’t have everything you want right now. This is how most adults get into trouble. Teaching delayed gratification is key to helping your children learn to save money. This is something that can be learned as early as preschool.
Help your little set a goal to buy a toy that they want. You want the goal to be easily attainable because little ones can be easily discouraged. You can offer them money for small chores or certain good behaviors and help them save the money for what they want.
You don’t have to be an extreme couponer to save money from coupons. You can coupon clip with your children at any age and it’s a great way to help them learn money savings. Take it a step further and tell your children that you plan to put the money you save from coupons into your family’s savings account!
Open a Savings Account
As your children get older and get jobs and/or more allowance, it is crucial to open a savings account for them. A savings account will allow them to put into action what they are learning about savings.
If your teen has a job, help set a budget with them. Explain that some of their money they can use for spending and decide what percentage of every check will go into savings.
A fun way to help your teen save even more is to offer to match whatever they save. It will encourage your teen to save more and it mocks a 401k or retirement savings so they will already have learned how to build long-term savings for their future.
Stock Market Simulators
Introducing your child to the stock market is easier than ever. Instead of them spending so much money on brands that they love, why not have them invest it? Stock market games and simulators help your child to learn how the stock market works and how to make their money grow.
If they get the hang of, you can even help them research and invest their money in the real stock market. They can learn to help manage and grow their own stock portfolio and be steps ahead of most adults!
Practice What You Preach
The best way for your child to learn about money management is to practice good money management habits yourself. Children learn a lot of their habits from what they see their parents doing. It can be confusing to a child to see their parents dealing with money poorly and yet trying to teach them how to manage it properly.
Money management should be practiced as a family. Everyone needs to set a good example for each other. A family that manages money properly will set themselves up for success for generations to come.