How to teach saving to your child
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Tips to Teach your Kids About Smart Money Management

As a parent, it is your responsibility to raise your child to face the real world. At a young age, kids live in their own world and so to them life seems predictable. But it does not work the same way when they face the real world. As a parent, you have to teach your child to face the real world. If you think it is not the right time to teach them because they are at too young to understand, then you are wrong because young age is the perfect time to learn things quickly and allows kids to adapt to new things earlier and easily. In that teaching, the process of money management is considered a major one. If you want to know how then continue reading this article. This article will help to discuss the

Tips to Teach your Kids About Smart Money Management

How to teach saving to your child

Practice Saving

Tell your child that money is not only for spending and that it should also be saved for the future. Give some money and ask them to save that in their piggy bank or give them someplace to save that money. Regulate this habit to make your child do it in their daily routine and the practice will become a habit.

Take the Lead

Instead of teaching or advising anything be a lead. First parents have to practice what they preach to their child. Then your kids will automatically follow you. Keep in mind that your child is observing your behavior and attitude. So they tend to do the same thing that you are doing in your life. Be the example for your child in money management.

Involve Kids in Financial Planning

Take your child to shopping and ask them to choose the things that come within your set budget. Show them how to manage the money in real life. Giving them actual practice and from that they can understand how money works in real life. Give them a choice to choose, then only they can improve the decision making skill in money management.

Teach the Art of Giving

Making money and saving it helps one to enjoy a pleasurable life. But this is not only important in life. It is important to have some ethical values to be a good human being. So teach your kids about the value of giving and encourage them to give some amount from their savings towards social welfare.

Encourage Earning Money

Allowing your child to earn money is the basis for the saving habit. Giving some money for their savings is not the only means to teach them the importance of saving. When they work and earn money, it can teach them to better manage their allowance. At the same time, it is a great opportunity for them to learn to handle money and use it.

Track the Spending

Once they start to spend money the next step is to write down the details of their daily spending.  It will help them to know how much money they need and how much they spend. From this practice, they know how fast the money was spent by them from the savings. If they experience this once they will learn about saving goals; this will be an eye-opener for them. So ask your child to track their spending.

 

 

It is crucial for the child to have good understanding of money during the growing years as a parent, do your part by investing wisely for their bright future. Do checkout the best investment plans for kids at PolicyBazaar.

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28 Comments

  1. Teaching kids about money management form a young age is very important. And by following certain basic practices, they can develop this habit at an early age.

  2. You have given great suggestions in this post regarding teaching smart money management to kids at young age. I think involving kids in financial planning and practice saving can help a lot to make them understand this important aspect of life.

  3. Strongly agree on all the pointers, teaching kids about financial management is the crucial aspect of parenting, which required utmost discipline and determination from parent’s side!

  4. Will surely check our Policy Bazar buddy for the kids investment plans. You have undoubtedly caught my interest on this topic.

  5. Inculcating the saving habit in kids early on is very important. This helps them appreciate the value of money early on. These are really good and practical tips for coaching kids about this important aspect.

  6. Investing, not just saving, is an important part of money management. Since money’s value erodes because of inflation, children have to be taught about how to beat the inflation by investing in assets like stocks, mutual funds, and real estate. Even though it’s a long-term game, the seeds of education on these should be put right now, so that they can use the knowledge when they can.

  7. Teaching kids at a young age about finance and saving is really important. Taking small steps towards this helps a lot in the future. Have heard a lot about policy Bazar, will surely check it out soon 🙂

  8. It’s so important to teach kids how to save money and be responsible. I loved the way you have shared the tips to encourage kids to value and save money.

  9. Agree with all the pointers, also I believe the value of delayed gratification also helps them understand the real value of savings. I have also covered this topic on my blog a few years ago.

  10. Certain habits indeed to be instilled from a young age and money management is one such habit that needs through introduction in a kids life. Loved this post of yours on the same.

  11. I am teaching my son the art of saving and have given him a goal for the same. Hopefully he will be learning a lot from this. Also for any new toys these days we ask him to earn it. Nice pointers in the article that I agree too.

  12. You have written such an insightful blog. I am glad to note down a few points from this and will follow when my little one grows a little more.

  13. It is important to teach the kids the money management and get them involved in early years. This post is so good and gives really amazing tips in teaching the kids well.

  14. Your post is such an eye opener for me. My daughter is 7 and I haven’t taught her anything about money. Partly because of this lockdown that we haven’t been to the market in 16 months and partly because of digitalization of money.

  15. This is a brilliant article. As father to two grown-up kids, I feel the need to teach them about smart money management right now. They would love to know about how to save money for long-term benefits.

  16. My son loves saving money in his piggy bank. Also loves to count it or make us count and then boast of that petit sum. Mumma I will buy you this or I can buy this toy for myself etc. Feels good seeing that he understands the importance of money in this tender age.

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