Tuesday, February 17, 2009
Ching Ching! Teaching your Kids how to Save Money.
times when money is tight learning to live on less is important. What is even more important is learning the art of putting money away for times when you really need it, or for things that you desperately desire. As parents we are employed with the task of teaching all kinds of traits to our kids. We GET to help them develop habits that will benefit them through life, attitudes of gratefulness and respect, but one are that may be extremely import for parents to teach their kids is how to save money; to set money a side for things of value and how to think in to the future rather than only in the present. How do you teach your kids effectively about how to make a stash of savings? Here's what we have discovered works well for us.
Step 1: To start sit down and talk with your kids about what they truly enjoy, or desire. For example talk about a big toy depending on the age of the child this will very and also depending on what is reasonable to save for such and item. I suggest start small and work your way up. Set reasonable goals that can be met. SO, big toy or special place to eat. I say a out of the ordinary place for eating out because for my kids going out for pizza is a huge treat. Unfortunately all those toys and eating out can be tough when money is tight. I will add that if you have more than one child you can each try to get them to agree on something special or do this for each child individually.
Step 2: They are even willing to dig into daddy's pockets! I hope this isn't a sign of things to come. Now that you have determined what you’re saving for get a jar with a lid and make a slit in the lid in order to put the money into the jar. If it's a metal lid be very careful make the hole and even more careful as you add the money. Make sure there are no sharp edges expose that could possibly hurt someone.
Step 3 : Look at the jar, figure out about how much money is needed for the special item, and what kind of money will be placed in the jar (coins only, coins and bills, etc.) make a line on the jar, or simply say when it's full that shows how far the child/children have to go before they get to open the jar, count the money and spend it on something very special.
Step 4 : How do you fill the jar up? Well, it depends on you and your family, and how old your kids are. Do you give your kids and allowance, do they have small jobs they do, or are they to little for any of those things. The easiest way is spare change. At the end of every day empty out your pockets and place all your spare change in the jar. You can explain to your kids the concept if they are old enough, or you will simply have to give them the change to put it in the jar, which you will discover is extremely exciting for them (speaking of my kids 3 and 4 years old). Trust me when they catch on to this if they find a piece of money laying around the house on the counter, or out side somewhere they'll pick it up and won't hesitate to put it in to their collection. With older kids you can engage them in more meaningful conversations on the topic of money, finances, budgets and saving. But for the little ones just make saving more a fun experience and I guarantee they will find way to save, and you will have done your part in preparing them for a successful financial future.