“Train a child up the way he should go: and when he is old, he will not depart from it” (Prov. 22:6)
After a little tip on why you should budget and take hold of your expenses, it is paramount to take this challenge further.
How? The how is by teaching your children this same technique: how to save money. Being able to do this will be an evidence of how far you’ve gone with your own budgeting challenge and not only teaching your children how to save.
A lot of teens nowadays do not understand the value of earning and spending money; reason being that our kind of society does not orientate them that investing is necessary, even if they are still students.
You, as parents, should be able to teach your kids how to save money and how to be content with what they have, especially things with monetary value. They should be able to understand the concept of money and investment as early as childhood. This will prepare them to learn money management as they grow old.
Here are some tips on teaching your children how to save money:
1. Your children should be educated of the meaning of money. Once your children have learned how to count, that is the perfect time for you to teach them the real meaning of money. You should be consistent and explain to them in simple ways. Do this frequently, so that they may be able to remember what you taught them.
2. Always explain to them the value of saving money. Make them understand its importance and how it will impact their lives. It is important that you entertain questions from them about money, and you should be able to answer them right away.
3. When giving them their welfare allowance (‘pocket money’ in local parlance), advise them to manage and try saving some of the money. You can motivate them to do this by telling them that the money they are able to save can buy them that new pair of shoes or toys they have always wanted, without having to wait a long time for you to provide them with it.
4. You can also teach them to work for money; this can start at your own home. You can pay them every time they go pick their younger sibling at school or when they give their younger sibling after-school tutorial. This concept of earning little money will make them think that money is something they have worked for and should be spent wisely.
5. You can teach them to save money by giving them a box in form of save, where they can put change and wait until it gets filled. You can also open bank accounts for them and let them deposit money from their ‘pocket money’. You should always show them how much they have saved, to keep them motivated.
Money and saving are not things learned by children in one sitting. You should be patient in teaching them and relating the value of money in all of their activities. Children will learn this easily, if you are patient and consistent in guiding them and encouraging them in this endeavour.
A good foundation laid for a child with regards to money will produce a generation of decent adults who are not easily influenced by money and have integrity; adults, who, when they attain leadership positions, will be principled and neither give nor receive bribes.
The time to start is now. It’s never too early to start.