|Handsome's stash that he allows us to see. The rest is saved in a special place|
My kids love saving their money. They have been getting $1.00 a week from their grandpa since they were born. He sends them a dollar each with my lovingly cut coupons and they love getting them. They take turns opening the envelope knowing that there will be dollars in there with their names on them love, grandpa. They save their money. I was also a good saver never spending my money gifts from family. As much as they save, we haven't really gone beyond the few piggy banks they have but I think it is time they learn a better budgeting plan. Hopefully this will help them later in life never be in debt.
If your child doesn’t learn how to manage money in his early years, he may grow up not understanding the value of a buck. This can trigger other financial issues, such as bad credit and overspending. As a mom, you probably budget the family’s finances. Rather than wait until your kids are older, include your kids in the household budget. This helps them develop an appreciation for money at an early age, and teaches them how to budget and save.
Here are five tips to help your kids understand good money management skills:
1. Set clear financial goals. If your child wants a toy or another object, rather than buy the item on a whim, encourage him to save his money and make the purchase himself. Maybe it’s an expensive item that he wants. In this case, you might agree to help with the purchase. Tell your child to save half his money and you’ll pay the other half. This is a good lesson in patience and saving.
2. Learn how to save. Let’s say your older kids want to attend a movie. Show them how to go online and look promo codes to save on their purchase. Coupons and promo codes are also helpful when shopping for other items online.
3. Teach budgeting. If you give allowances every week or every two weeks, show your kid how to stretch his dollar. Rather than spend all his money in one day or one weekend, encourage him to choose his purchases wisely and plan for the future. For example, if he wants to go to the movies tonight and skating in three days. Demonstrate how to budget funds for multiple outings.
4. Be smart with your money. Do you constantly overdraft on your bank account? Do you overspend on your credit card? Maybe you and your spouse fight about money. Your poor money habits can affect your children, and they may follow your example. Learn how to be wise with your money and pass these skills to your offspring.
5. Encourage investing. Open a high-yield savings account for your kid and have him deposit a percentage of his allowance into this account each week, maybe 10% of his allowance. Additionally, have your child save a percentage of money received as gifts. Once your child has enough in savings, consider transferring this money to a money market account or certificate of deposit.
There are many things that you can teach your kids, and if you instill in them good money habits, they’ll avoid financial headaches in their adult years. Children are never too young to begin budgeting and saving.