A lot of teens nowadays do not understand the value of earning and spending money. They were not oriented that investing is necessary even if they are still students. As parents, you play a crucial role in this area.
You should be able to teach your kids on how to save money. They should be able to understand the concept of money and investment as early as childhood. This will prepare them to learn money management, as they grow old.
Here are some tips on how you can teach your children how to save money:
1. Your children should be educated of the meaning of money. Once your children have learned how to count, that is the perfect time for you teach them the real meaning of money. You should be consistent and explain to them in simple ways and do this frequently so that they may be able to remember what you taught them.
2. Always explain to them the value of saving money. Make them understand its importance and how it will impact their life. It is important that you entertain questions from them about money and you should be able to answer them right away.
3. When giving them their allowances. You need to give them their allowances in denominations. Then you can encourage them that they should keep a certain bill for the future. You can motivate them to do this by telling them that the money can be saved and they can buy new pair of shoes or the toys they want once they are able to save.
4. You can also teach them to work for money. You can start this at your own home. You can pay them fifty cents to one dollar every time they clean their rooms, do the dishes or feed their pets. This concept of earning little money will make them think that money is something they have worked for and should be spent wisely.
5. You can teach them to save money by giving them piggy banks where they can put coins and wait until they get full. You can also open bank accounts for them and let them deposit money from their allowance. You should always show them how much they have earned to keep them motivated.
Money and saving is not something that is learned by children in one sitting. You should be patient in teaching them and relating the value of money in all of their activities. Children will learn this easily if you are patient and consistent in guiding them and encouraging them in this endeavor.
Thanks Jerlene for this useful advice. Certain of us don't have concern pertaining this matter. During childhood is the best kick start for us to teach our children on the importances of money and saving. Without the basic knowledge of money utilization or how hard to get money , our children won't know how to manage or even to save. Because for them money are very easy to get, just need to ask from parents. This is totally wrong. If they know where the money exactly come from, they'll understand.
and als0 i might advice you to give them a good gift in the form of a very useful book. The rich dad poor dad books, they do have a specialize book for kids smart kids rich kid.
Maybe its really useful for anyone who already have clild right now. I don't have any kids right now and i believe when i have one, i will teach him/her about that. I know i will do that because i'm really sensitive with money. So, i hope my kids also serious like me about money. I will teach them how important is money in our life and the value of money. I want they surprass me and do what i cannot do today..
Right now, i'm understand why my father really take serious with me if anything related with money, he will serious and angry to me if i waste the money to do some useless thing..:D
One must teach their children, the real value of money. The children must be told of a planed way to spend their money and to make a budget to save some money and keep in their piggy box so that their parents can pay them double the amount that the save in their piggy box. This would teach them a lesson to save money for their future and investing money.
