lessons we teach our kids can have a lasting impact in their lives. Teaching
them to save money in simple ways will surely benefit them when they grow up.
These seemingly small money lessons will help them when they need to budget,
save for something they need and want and even prepare them for retirement.
Here are some of the money lessons you’ll need to teach kids to save money so they can go be a savvy saver.
Set a savings goal
We all know that it is quite challenging to make kids understand the concepts of time, money and savings so why not make it fun and easy for them? Visualization and setting of short-term savings goals can help make these terms come to life.
You can explore this by picking an item or experience to work toward together. It may require some creativity, but see if you can brainstorm some fun experiences, the better.
Make the process fun and easy to understand by using props such as hanging up a picture of the goal and tracking the progress with a chart. Celebrate small wins with your kids! Congratulate them on every step of the way to further motivate them and make the process more fun and engaging.
Move from piggy bank to bank account
What comes to mind when you hear the word saving? Most people will say piggy bank. However, many experts recommend a different take on savings - start putting your kids’ savings in a clear jar, which enables them to see their hard work add up.
Then, when they reach the age of 7, try to move those funds to a kids savings account. There are digital banks now that enable individuals to access or view their accounts via a mobile app. Kids will surely love this especially because they are tech savvy, plus they can see their own little progress every time.
Aside from this, it is also best to show your kids that some banks and credit unions are better than others. This may require a little research but it is also something that we should teach our kids. So, pass that knowledge on to your little ones by comparing two kids' savings accounts with your child and talk through the advantages and disadvantages between the two.
Walk them through the application. An application for a savings account may not be the most exciting thing to do with your children but if you let them “help” you through it, it could create a huge impact on them and give them a sense of ownership.
Once you get approved, check the account regularly. It is also important to teach your kids how to monitor their savings account. You can also share with them the concept of interest rate and how much they are earning. If you stay and show them that you are excited, they’ll stay excited. Who knows, your conversation about interest rates could lead to conversations about investing and compounding interest.
Teach kids to save with an allowance
Challenge your kids to generate some income so they can build their savings. They can keep some loose coins, save their birthday checks and allowances.
If you don’t want to implement an allowance plan in your household, you can help your kids come up with some business ideas. You can search the web for some activities that your young entrepreneurs could explore including the classic lemonade stand or shoe polishing job at home.
This way, they will not only learn about saving but will also have an idea on how to run a business.
Talk about spending on wants vs. needs
When you teach your kids good savings habits, they will be guided to live below their means. Try creating a budget to help them understand how to spend on the family’s needs such as food, school supplies, gas and clothing. When it comes to the remaining cash, you can talk to them on how to avoid impulse buys and how to prioritize savings goals.
Allow your kids to make mistakes
As most parents say, now is a great time for your child to make mistakes because the stakes are low. If your child wants to spend their hard-earned money on a toy or some chocolates, let them buy it.
Once they realize their purchase mistake, you can ask them about their learnings and how they can do better next time. Ask them if they should research the product more? How can they remind themselves of their bigger goals? What do they enjoy spending money on? This simple exercise will go a long way, teaching them to spend a little smarter.
Talk about money with your children
Throughout this exercise with your kids, try to reflect on your own savings and spending. If you want to do better, share that with them and how you plan to improve. If you accomplish a savings goal, let your kids see your excitement and pride! You can share with them your daily money habits, budget and shop together, talk about values, and share your next steps to increase your savings.
Remember, a conversation about saving doesn’t have to be long and complicated. Make it an intentional routine between you and your kids. If you feel like you haven’t had a conversation about savings in a while, now is the time to add a reminder to your calendar!
As we may know, kids will follow our example. How we perceive money, what we do with money, and how we handle money, create a huge impact on how they will view it too. If you don’t have an emergency savings account yet, create a strategy to start an emergency fund. If you have some debts to settle, cut a few expenses and follow a budget plan for that too.
You have to remember that you can also pass on financial literacy to your children. If they see your hard work and wisdom in handling money, they will surely be inspired and will hopefully follow in your footsteps.
Vista Residences is the condominium arm of the country’s largest homebuilder, Vista Land & Lifescapes, Inc., which offers ready for occupancy and pre-selling condominium projects in Manila, Quezon City, Cebu, and Baguio that are strategically located within inner-city areas, in close proximity to premium universities and developed business districts.
Living in Vista Residences enables you to enjoy convenience, where everything is pretty much within walking distance or a few minutes away from the property; comfort because the project features and amenities are designed to deliver comfort at all times, which makes condo living a worthy investment; security that is 24/7 and CCTV monitoring, which makes the residents safe and secure within the property.
In line with Vista Residences’ thrust to offer convenience among its residents, it also features an AllDay Convenience Store and Coffee Project in all its projects.
Vista Residences is part of Vista Land’s roster of vertical housing brands that cater to millennials and young professionals. The other vertical brands include Camella Manors, COHO, and Crown Asia.
For more information on Vista Residences, email [email protected], follow @VistaResidencesOfficial on Facebook, Twitter, Instagram, and YouTube, or call the Marketing Office at 0999 886 4262 / 0917 582 5167.