Teaching small children good saving habits is a crucial thing to do so that they can learn the value of a dollar. When children see money, they assume that they can just spend it, and usually will blow it on a piece of candy, or some other small item. To them, the impulse of wanting something is incredibly strong, and that is why the parent needs to teach the child the value of saving money. How can a parent do this?
I remember when I was little, my mom would make me save up for almost anything that I wanted. It was hard being a six year old with no money except for a quarter for an allowance every week. How was I supposed to buy that new Super Mario game if I wasn’t able to make the thirty dollars that the game cost? I remember my mom telling me that I had to save money, and I learned a very good lesson out of it. Saving money can be hard, but it is worth it.
That is the lesson that you have to teach small children when it comes to saving money. They cannot possibly save up enough money to make any big purchases, so you obviously have to set smaller goals for them. The key isn’t making them save the money, the key is teaching them how to save money. If they learn that saving is a good thing, then they will save money for things they want in the future. They won’t just expect you to pay for it.
One good way to teach children how to save is to give them a piggy bank. No bank account they have is going to fill up quick with the money that they will earn, but you can teach them to save change. Any money they earn in allowance, or any money they find on the floor can go into the piggy bank. Once the piggy bank is full, they can use the money to go buy something of their choice. Matching what they save, so that they can get something really nice would be a good incentive as well.
Teaching small children how to save money has to be done in simple terms. Just show them that saving money means that they will have more to spend later on, and if they save money, they will always be able to get what they want in the future. When they are able to buy that video game for themselves, it will give them a sense of independence, which kids like.
Teaching children to save money doesn’t have to be hard. Just show them they can do good things if they save, and that everyone has to do it. Don’t get too complex, just keep it simple, and teach them the concept of saving, which can be taught to anyone regardless of age.