Saving money is one of the most important aspects of building wealth and having a secure financial foundation. Yet many of us have learned the importance of saving money through trial and error, and more importantly, experience.
In school, we aren’t really taught about the importance of saving and many of us find that as adults, we have to fend for ourselves.
If you are a parent, here are 5 ways to teach your children about saving money.
Start with a piggy bank
Every person receives a piggy bank at some point in his or her childhood. It’s one of the most effective ways for parents to teach their children the value of saving money rather than spending it. More importantly, the piggy bank is also a good reminder for parents and young adults who may have forgotten the importance of saving.
It let you treat yourself and you’re Family
This is the greatest benefit of saving money and the main reason people save. Whether you are saving money to buy something for yourself or to surprise a member of your family, once you are actually able to do it, you will be so happy.
Use saving jars
When your kids really want the latest and greatest toy or a new action figure, let them know they will have to save up for it. Give them a jar for each of their desired purchases and offer them a small allowance each week in a denomination that encourages savings.
The importance of budgeting
Developing and adhering to a budget is a method they can use to save and avoid burdensome debt. You should explain to them the importance of budgeting and how to carry it out.
Open a High Yield Savings Account
When your child is old enough to understand the concept of interest, you can look for savings accounts that earn interest. Help your child open a high yield account online and explain the importance of compound interest