VIEWS: 27 PAGES: 1 CATEGORY: Personal Finance POSTED ON: 11/29/2012
You may think that kids need not think about money-matters because they’re still young. However, it’s important that they understand the value of money at an early stage because financial responsibility is a vital skill for when they grow up. Help and introduce these 8 money saving tips for kids to teach to help them handle their finances in the future.
8 Smart Tricks For Kids To Save Money You may think that kids need not think about money-matters because they’re still young. However, it’s important that they understand the value of money at an early stage because financial responsibility is a vital skill for when they grow up. Help and introduce these 8 money saving tips for kids to teach to help them handle their finances in the future. 1. Motivate them- kids need something to motivate them in order to get them to save. If they happen to like a skateboard or a bicycle, tell them that they have to work hard and save up in order for them to get it. This should give them the idea that money is earned and not just found anywhere; in which they will value their purchasing even more. 2. Money banks- encourage them to have their own piggy bank or anything to store their money in. Choose something that can’t be opened easily so that they won’t be tempted to open it up and spend the money at once. 3. Allowance- giving them their weekly allowance will let them experience having money on their own. Make it clear that they have to budget their allowance for the whole week or else they’ll be broke until the next allowance day arrives. 4. Save money regularly- given that they get their allowance every week, explain the importance of allocating a certain amount of money regularly. Supposedly, 20% of the total amount should be allocate to one’s savings account; but since they are just kids, what’s more important is that they put into practice saving money on a regular basis and that they instill the discipline within themselves. They’ll be able to carry out this habit once they grow up and saving will be a lot easier for them. 5. Let their friends help out- you can ask your child’s friends to help them limit your child’s spending by simply reminding him that he is trying to save money. If your child trusts this person, he will surely think twice about spending his money on something. 6. Every penny counts- most children think that coins and small amounts of money are not helpful when it comes to saving because they hardly make any difference to the amount. Tell your child that everything counts and that all of those coins or small can add up in the long run and that it can make a huge difference altogether. 7. Credits and debits- your child also has to learn how credit and debit cards work. Explain the value of checking credit report regularly, the importance of paying all bills on time, finishing off debts etc. 8. Let them use their money with a budget- creating a budget will help them determine if they have enough coverage for the things that they are planning to buy. Guide them with their budget list and let them feel what it’s like to spend an amount of their savings. Never miss the opportunity of teaching your child how to handle money because this is a crucial step for your child’s independence. Acquainting them with financial matters at an early age will help them better understand the things that they will go through throughout their life. Joy is an active blogger who shares extremely interesting finance management tips over the web that encourages people to manage their personal finances, check credit score regularly and estimate your credit score before taking any major financial decision.
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