Teaching Them Young: The DO's and DONT's of Teaching Kids How to Save Money

Wednesday, February 25, 2015

Hello there guys? How's your week so far? Mine is okay so far except that half of our laboratory is being demolished. Dust and dirt are everywhere. But it's okay because I still be able to do my work despite limited space.

Anyway, today let me share another great article on teaching our kids to save money. If you find my post about  Ways to Teach Our Kids to Save Money helpful, then this is a must read too.

More than a year ago, Bangko Sentral ng Pilipinas launched a financial literacy campaign that targeted kids as young as six years old. The endeavor called Banking on Your Future, aims to start kids early on the path of savings, teach them the value of putting money in the bank, and eventually, create future generations of money-savvy adults. In partnership with the country's biggest banking institutions and the Department of Education, Banking on Your Future allows parents to open up account for kids with a minimum deposit as low as PHP 100.00.

Since there are programs like this that teach awareness to kids to become future savers, as parents how can you help them see the importance of saving money?

DO'S

Teach them the value of saving by giving concrete examples
It’s easy to tell stories to your kids to imply the significance of savings, however its better if they can see a real life example. For instance, you're running low on money for food, you can share to your kids the importance of having a savings account during tight times.   Realistic scenarios will have more bearing on them as opposed to concocting stories about saving.

Include them in the process of saving
Nothing beats the power of engagement when it comes to teaching your kids on how to save money.  It pays to include them in the process, instead of just telling them that you’re saving for their future let them be involve in the process.  Take them on occasional trip to the banks and let them experience on how depositing money works. After all, the bigger goal of the whole activity is teaching them the habit of saving money, not just to make an account under their name.

DON'TS

Hide your financial problems from them
Teaching your kids something is more than just telling about butterflies and rainbows; at times, you have to share tragedies as well as cautionary tales in the process to make sure that lessons will have a great impression in them. If you want your kids to fully understand the gravity of having a savings account, let them know the financial hardships of the family and how savings account play an important role in that. Let them know that it affects them as well, and that they will remember those lessons very well.

Take away their choice to save or spend
The problem with some parents is that they coerce their kids into saving, a very dangerous act that may deviate them from what they actually intend to teach them. To make sure that saving will be a conscious choice rather than a mandate, let them know that the money you are giving them can either go to the bank or can go to unnecessary expenses. If they start to save out of their own free will, then you are successful in imbibing them a sense of financial responsibility by saving money.

There are many ways you can let your child save money, but the main point would be the habit of saving money should always go over the money itself. When they grow up, they will have this invaluable lesson that not even money can buy.

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