Ways to Teach Our Kids to Save Money

Friday, November 14, 2014

One of the changes I want to make on this blog is to have a regular post about topics I love to talk about. If you notice since Monday, I have a consistent daily post. This is because I am already following a specific subject each day to write about. I hope I can cope up with this change . So for today, I choose to write about ways to teach our kids to save money.

Start Early

The little boy on the photo is Matthew Andrei (and I bet you know him a lot, haha!) with his coin banks. This early, we are teaching him  to collect and save coins. We bought a Mickey Mouse Coin bank for him to put inside the coins. However, we want to make more organize and easier to count so we decided to separate collect and save the coins.

That's why you can see 4 other containers in the photo. We collect 5, 10 and 25 cents, 1 peso, and 5 and 10-peso coins. As of this moment, most are half filled. We are planning to deposit it on his own Junior Savings account once all are full. 

Open a Savings Account

Yes, Matthew already has a savings account. We opened one for him before he turned two, and all the money he gets go to his savings. We also allot a portion of our monthly salary to go to his savings account. Having his own savings account will be his security in case (but I hope God does not permits) anything not good happens us. Also, since we are saving for him since 2012, we used a portion of it to pay for his tuition fee. But as much as possible, we don't want to withdraw money from his account for just like what I have already said, this is his security fund.

Encourage them to save money by giving rewards

Giving rewards is a very good motivation. This is proven, especially with my son. When he get big or super stars for a good behavior, he will immediately have a reward in terms of pasalubong when we got home. You may match his savings so he will to encourage our kids to save money more.

Teach the value of saving

It's not enough to teach them how to save. Teach them the value and importance of saving money. My son will sometimes think we can buy him anything he wants. Earlier, he will have tantrums whenever he can't get what he wants from a store. But I always tell him it's not good to get whatever you want just like that. That he needs to wait to buy something he wants. He may not get my point right away and because he's just a little boy who badly want that something inside the store, but in time he got my point. So the next time we go to a store and he sees something he wants, I will just give him a gentle reminder that buying that is not our purpose or we will buy it some other time. Or better yet, he can save for it and he will agree.

With this, he will not just learn the value of savings but he will surely give importance to the things he buy from his savings.

Teach them how to share

Matthew sometimes refuse to give or share. That is especially when he's so jealous. But with a good talk, I can persuade him to share. That's a good sign.

Also, if he can save to buy what he wants, he can also save to share. This will be one of the values I want him to learn - to share.

Be a good example

You may not notice but our kids adore us. They are looking on anything we do, and they are listening to what we are saying, even if we thought they are not. So if you want them to do something, set a good example by saving money too.

Since Matthew is seeing us collecting coins, he got this hobby too. That's why when he saw coins around, he will get it and ask me if he can put it inside his coin banks. Even the coins inside my coin purse, haha!

One time when he saw my pink coin purse, he opened it. Then I saw a big smile on his face.

Matthew: Mommy, ilalalagay ko po ito sa alkansya ko ha. (I'll put these inside my coin bank.)

What can I say but okay son.

Those are just few ways to teach our kids to save money. You may have your own effective ways but make sure you will not just emphasize money. Always emphasize the value of savings, not just money but anything he can save like electricity, water, and food.

If you have something to add up, please feel free to comment down.

Weekend is here, so I wish you a great one with your family.