Because they do not know the meanings of money and labor, children can be relentless in spending money and constantly asking their parents for something. Children who are introduced to the importance of saving and saving money at an early age gain experience in managing money and living a more productive life. In this article, we talked about money saving tactics you can teach your child, so let’s get started!
1. Teach the concept of money
According to a study by the University of Kansas in the USA, the seeds of making children a habit of saving money can be planted even at the age of 5 years. Children’s relationship with money is shaped by imitating the way parents spend money. When talking about shopping together, pocket money given during holidays, children are introduced to money. However, money is still not something that is deserved for their labor.
For this reason, you should start by explaining the relationship between money and labor at an early age to your child, and that he should spend as much money as he needs. While doing all these, do not neglect to emphasize that money is only a tool to meet our needs.
2. Organize mini games
You can play games such as merchandising and restaurant management at home with your school-age child. By giving him certain amounts of fake money, you can prepare various scenarios consisting of items or food menus that he can buy with these coins. Once the child learns how to shop at home, he or she will have a better idea of shopping in real life.
3. Play board games
Board games are a good option to introduce financial concepts and teach children about spending and saving money in an interactive and fun way. In this way, children are conscious of money management and since they can see the money they have in a concrete way, they get an idea about the size and smallness of money.
4. Buy a piggy bank
One of the first options that come to mind at the beginning of the methods of saving money at home is piggy banks. This is also one of the most enjoyable ways to teach kids how to save money. In this way, the child can have the opportunity to experience for himself how the coins thrown into the piggy bank turn into large sums.
Since children are often competitive, you can set a certain amount of goals each month and challenge your child to reach that goal. Tiny prizes like a toy or movie ticket she wants will give her extra incentive to save money.
5. Ask him to live on his allowance
You should talk openly with him about the pocket money you give to your child. Inform him clearly about what needs he can meet with this pocket money, what his allowance includes and does not cover.
Since the relationship between child and money is not like we adults, he may not be able to get along with the money you give him in the first week. However, in this case, if you give him money again, there is a high probability that he will not be able to manage the money for a long time. Otherwise, he will spend the money you gave him more carefully the next week.
6. Teach to set goals
Explain to your child what can be done with the money saved. When he asks you for something, tell him that he can save his pocket money and get what he wants. By doing this, you are giving your child a desire and a reason to save money. Thus, he can even make it a habit by taking the initiative in getting what he wants.
7. Give the freedom to shop
One of the funniest ways to save money is to give your child the freedom to do their own shopping. Your child does not know how to understand money, as you are in control of money during family shopping and holidays. However, giving your child a certain budget for the holidays you take will make him/her very happy to get what he/she wants.
Being responsible for her own souvenirs and the money she spends on them will help her child better understand what shopping means and the value of money. Thus, he can make attempts to save money for such needs from the annual money he receives. Because basically, he will have learned how to manage money by experience.
8. Be open with your child about financial matters
You can inform your child about your family’s monthly and annual budget. Talking to your child about the money you earn with your spouse, what you spend with that money, and how much budget you allocate for your needs will help him/her understand these issues much better.
You can even help your child plan their own budget by telling them how much the pay raise will be reflected in their pocket money, and that they can get whatever they want no matter how much money they save. As your child gets older, you can also talk about things like credit cards and bank loans.