Teaching your child to save money is crucial. Financial literacy early in life leads to happier, healthier and less stressful adult life. This life lesson isn’t exciting, and it may be difficult to make it fun for the little one but there are so many ways to make it interesting. Some include:
Give them pocket money
You can choose to give the child pocket money from time to time or create a system that rewards them with small amounts of cash for chores done around the house. The amount given doesn’t matter; the lesson is what matters.
Get a piggy bank
You can introduce your child to the concept of saving in a piggy bank after giving them pocket money. You can teach your child to split the pocket money to save, spend and give a percentage to charity. This helps prepare them for financial responsibility in the future.
Encourage them to set goals
If your kid loves a special toy, encourage him to save some money for it. Don’t try to influence all of their decisions, allow them to make some mistakes so they can learn from the experience.
Lead by example
Kids learn better from your actions. So, lead by making the right financial decisions, savings and separating needs from wants. When they get older, you can keep them informed about bills, grocery shopping and more. When you involve your child in such daily financial issues, you’ll equip them to be financially responsible in the future.