It is very important that we teach our children the value of saving. Here in Singapore, people who learn to save at a young age went a long way. It is not easy to encourage children to save because they tend to see many things and the impulse is undeniable but it is important that we train them as early as possible.
Saving is no fun for some so the challenge here is how to make it enjoyable for your children. You just don’t tell them that they put all their money in a jar and expect to fill it without any explanation. Teaching children about saving should be in a way that they will understand it easily. You can teach simple tricks and as they grow old, you can impart different savings strategies.
Here are some tips on making saving fun for the children:
- Utilize different envelopes or jars: Adults are familiar with the “envelop budgeting system”. This kind of system can help us keep tabs with our spending by labelling it. Children can learn from this system too. For children, you can look for different envelopes or jars and label it according to their needs or wants. For example, in an envelope, cut out a picture of a particular toy. This will encourage the children to save. Envelopes andcontainers should not only contain the savings. It should also contain daily spending of the child and it should not go beyond that.
- Create savings goal chart: Now that you know what your child saves for, it is time that you help him figure out how and when he will get it. You can begin by making a goal chart. The chart can give him ideas of how many weeks it will take to get that particular toy. Do some calculations as much as possible. Do not forget to put the picture of the toy in the chart so he will be inspired every time he looks at it.
- Offer reward: When training your child, one common technique is offering rewards. The good news is that there are plenty of prizes that you can offer to the children. For example, to encourage saving more, give your kid small reward or treat. It can be in a form offood or video games. As long as it motivates the child, there will be no problem.
- Setting an example: This is always the most important thing that you can do as a parent. Setting a good example to your children will inspire them to move. Letting your child see you saving money is the best. Your child may even think that saving is normal.
- Matching the contribution: There are some agencies here that can match up your contributions. This is a good feeling, right? It is time that you use this strategy to inspire action. For example, if your child reached his target, you can match up and he will be too happy because it doubled.
Savings should be taught and learned as soon as possible. It can make a difference at the end of the day.