Saving - Teach The Children

Kids pick up your patterns, they observe the way their parents are with money and, as with anything else, it just becomes natural for them to do the same. Teaching children about the value of money will help them as young adults and stay with them throughout their lives.

A lot of people will not discuss the subject of money. I find this amazing, I think it's important to talk about money especially around kids, otherwise where else do they learn it from? Money isn't everything but you can't survive without it so it's an extremelly important part of your child’s future and you would like them to be able to cope knowing they are financially savy. Make money matters a family exercise - kids are pretty intelligent creatures and this could be one of life's most beneficial exercises. We place so little importance on teaching kids - even grown-up kids - about money and then send them off to work with no real sense of the value of money. In effect, this is one of the things that has the highest impact on their life and the way they are able to lead it. Why is it the subject is taboo? Let your kids learn from you, teach them the value of the dollar, teach them the benefits of saving and teach them what spending is really about. Talk to them about your mistakes and ways that can enable them to be financially secure rather than bankrupt.

Make earning pocket money a valuable learning experience that will set them up for life - buying their own things that they so desperately need. When they have to buy for themselves or contribute to these 'essential' things, it's amazing how quickly they revalue what is important. Encourage them to put a portion of their pocket money into a savings account - the benefit of saving can even be encouraged by having a system of what they save, you will match.

Another great idea is to have children learn about donating. If they learn this as children this will help to turn them into very compassionate adults.

Ridi's parents have decided to match her bank account balance as a reward for saving, so she is encouraged to save by knowing her efforts will be rewarded.

Xavier, after always wanting things while shopping with his mum, has been given pocket money and he now has to consider what to spend it on. He quickly discovers that it's not so important to have those little things that he once thought so important.

Darcy wanted a bike worth $400 so his parents decided that if he saved half the money, then they would contribute the remainder. This would give him a reason to save and teach him a valuable lesson by achieving a goal.

Summary

Make money fun Set your children up for life with money sense