Teaching Your Kids to Save Money 1

Teaching Your Kids to Save Money

Remember how old you are; it pays to be financially savvy. Children are curious about money, and through statements and repetition, they can be taught about it as quickly as they can rely on it. Educating, motivating, and empowering kids to grow to be regular savers and buyers will ultimately inspire them to pursue monetary independence and smart economic selections later in life. To help you train your kids in personal finance, here are 13 cash management pointers.

Money Management Tips for Kids

1). Talk to your kids about your values concerning money.

Teach them a way to store it, a way to grow it, a way to spend it accurately, and how to keep away from the temptations of credit score cards or excessive, thoughtless spending.

2). Help your children research the variations among desires, wishes, and wishes.

This will hopefully prepare them for making suitable spending decisions later in life. You can assist them by differentiating between matters that they want (new shoes, for example), things that they want (a brand new song CD), and things they want and might need to shop for (a brand new bicycle or cellphone).

3). Teach them about putting desires.

Whether it’s saving to visit the movies once a week or saving up for an iPod, goals will help your youngsters study the cost of money and how to become responsible for it themselves.

4). Introduce your youngsters to the cost of saving instead of spending.

To show the idea of income interest on profits, you may recall paying “hobby” on the money your youngsters keep at home. This will foster the continuance of a financial savings plan after its existence.

Pocket Money and Spending Decisions

Receiving an allowance will provide your children with a sense of independence and spending energy. However, surely turning in the cash each week isn’t educating them about the value of money.

5). Give pocket money in denominations that inspire saving.

If they obtain R20 per week, supply them four R5 cash and inspire them to set aside at least R5 closer to their savings plan.

6). Take your youngsters to a financial institution to open their personal financial institution savings account.

Encouraging normal saving behavior early is one key to saving fulfillment. Just remember that you may typically want to accompany them to open their financial institution savings account if they’re under 18 years old.


I am a writer, financial consultant, husband, father, and avid surfer. I am also a long-time entrepreneur, investor, and trader. For almost two decades, I have worked in the financial sector, and now I focus on making money through investing in stock trading.