Teaching Your Kids the Value of Saving
Your kids learn a lot of things from you as they grow up. They learn lessons that you specifically teach them, such as how to tie their shoes and proper study habits, as well as lessons from observing you, such as ethical principles and morals. The vast majority of the financial education that children receive also will come from their parents. Some of these lessons may be observed and others may be taught through structured or planned lessons. One of the most important financial lessons that you can teach your kids involves the importance of saving and how to save.
Why Saving Money Matters
Adults who are financially secure are those who have a healthy cash reserve in savings accounts and other types of accounts. The amount of personal debt adults carry has an indirect correlation on their savings account balance. Savings allows you to use cash rather than debt to make large purchases, to pay for life’s emergencies and more. Furthermore, adults who have sufficient balances in their savings accounts are not forced to live with the stress of living paycheck-to-paycheck. Saving money helps adults to live a comfortable, financially secure life. As a parent, this is a type of life that you want your kids to enjoy.
How to Teach Kids to Save
There are several different ways to teach kids to save. You should talk to them regularly about the steps that you take to save money. The best way to save is to make small, regular contributions to your savings account. Ensure that your kids know that a portion of your income regularly is deposited into your savings account. You should also show kids the value of saving by opening up a savings account for them. Encourage them to earn money by doing chores around the house. If they are old enough, they may earn money with a side job like babysitting. Deposit a portion of their regular earnings into a savings account. Review the balance of their savings account regularly so that they can see their account balance grow with time. When kids want to make a purchase, encourage them to save up their money for it rather than hand them the money as they desire it.
Teaching kids about money, and particularly about saving money, can take a long time to do. By saving a small amount of money on a regular basis, savings account balances can grow significantly. Because of this, showing kids the rewards associated with saving money will take time and regular effort, but the benefit that your kids will enjoy throughout their adult lives will be worthwhile.