It is never too early when it comes to teaching a kid to save money. Money is hard to come by these days. Money is scarce to most and the best way to instil the value of saving money for the rainy season is to start teaching our kids early in life.
Give them a coin bank
Giving them a symbol of how to make their money grow through savings in the form of a coin bank will forge a sense of responsibility and respect for the value of saving. Encourage them to keep their small change regularly in the coin bank. Allow them to open and count the money when it is full and help them deposit in their bank accounts.
Explain the meaning of savings
Kids may not have a sense of value for savings yet but they will just follow as directed. However, even at an early age, you can explain to them the value of savings by giving examples and showing illustrations. A book entitled “The Money We’ll Save” by Brock Cole is a good classic book to read to kids. It teaches kids to be creative to help keep the costs down and save in return.
Match your kid’s contribution
This sounds like a contest but it helps the parents and their kids to keep tabs of their savings and how they will grow over the years.
Some banks offer their loyal savers novelty gifts to recognise their saving efforts and also reward them for their deeds. As parents, we can also do that by giving small tokens like a shirt, pen, small toys or books to read to let them know that their good efforts are rewarded and recognised.
Be an example
The best way to teach a child to save is to see you “actually saving” too. Kids will follow your lead and will see savings as a normal routine at home that has to be done. They will also get inspiration from you for setting a good example and leading the way to their bright and secured future.
Do you teach your kids to save early on? What are other tips you can share?