10 Ways to Train Your Children to Save Money

Every parent has the responsibility to inculcate the habit of saving to your child. You may think that it is very difficult to convert them money wise. But once you start, you will feel how your child is agreeing and cooperating with your plans and programs. Your responsibility is to make them feel the value of money to enable them to arrive at important decisions on money matters. It will also help you to achieve your financial goals.

With present lifestyle changes, every child is expecting all comforts of life. Of course every parent is obliged to fulfill the needs of the child. However the parent should not suffer from the paucity of funds to meet each and every need of the child. The child should be made to understand the value of money at the age of childhood and this will make them to understand and show reasoning in their expectations. Just read few tips to help your child to understand the value of money.

1. Wish List

Make it a point to ask your child about preparing the wish list. For example your child may desire for a teddy bear, remote control car, mouth organ, bat and ball, cycle etc. Help your child to prepare the list of items desired and if possible the picture of each item. The title will be ‘JHON’s WISH LIST 2011′

2. Train Them to Set Goals

Let us start with teddy bear. Just tell them the approximate price value of teddy bear.. Purchase of a teddy bear will be the goal for the month January – February 2011. Just commence a conversation with your child. Prepare sticker: ‘Now onwards JOHN will save money to purchase a teddy bear worth of Rs.250.00.’ and paste it at your children’s corner. As the savings progresses, just write the amount saved. Once the target is accomplished just write the words in appreciation of their efforts.

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3.    Funny Process of Saving and Spending

Make it a point to educate your child in a funny way about the importance of saving money and spend the same to purchase the wish listed items.
 
4.    Introduce Currency Denominations

Make it a point to introduce the currency notes and coins and their values. How a thousand rupee currency will appear? How a five rupee coin will appear? Also ask them to count a bunch of currencies with various denominations.

5.    Piggy Bank (Money Box) and Saving

Slowly inculcate the habit of saving. To start with introduce the piggy bank (money box). Guide them to save money. Keep praising your for even if a small amount is saved. Reward them when they achieve their target. Take them to shops and make them to observe things and guide them to purchase the items of their choice from the money saved by them.

6.    Bank Account

Take them to bank. Just tell them how the bank is helpful in saving money. How you are benefited with interest for the deposits you made? Just make them to feel the importance and the benefits of saving. Convince them to go for the children’s saving account in your child’s name. This habit will convert them as money conscious and develop interest in pecuniary affairs.

7.    Money against Labor

Make it a point to teach your child about the importance of labor. They can fetch money by going to the school by walk or by cycle. Just ask them to carry out small jobs like cleaning, watering the plants, feeding the pets, dish washing and so on and reward them with money. The money earned should make them proud.

8.    Money against Purchase