Tips on Ways to Encourage Your Kids To Save Money
It is important that kids of all ages learn that saving money is a good thing, and the earlier they get started, the better.
The first thing you should do as a parent is start a savings account for them right after they are born, and try to deposit at least ten dollars a month in their accounts. At just ten dollars a month until they are 18 will give them over $2000, not including interest. Sure it won't pay for college, but it is a nice way to start.
As soon as you can, start teaching them to count money. Go out and buy some fake coins and bills to start with, and teach them what each coin and bill is worth, and teach them simple math using money. This gets them familiar with what it is and what it does, and gets them ready for the next phase, allowances.
Now you may be on a limited budget, and it may seem that an allowance is out of the question, but consider a few things before you go tossing this idea out the window. Number one, when they are ready to start doing chores, even simple ones, an allowance encourages them to not only do them, but to do them right. These can be simple, or a list of different things involved with each chore, and a pay amount for each one. This gives them an incentive to do the best job they can, because the better they do, the more they get paid. Now isn't this how it's supposed to work in the real world? The same is true for good grades.
Now consider that when your kids don't have an allowance, they ask you for things like candy, toys, video games etc. When you can't deliver or don't want too you usually get bugged and pestered until you finally give in. These things can add up, and in the long run an allowance is going to cost you far less. If you put your kids on an allowance plan, then they use their own money to buy the things you would normally have to buy. It also gives them choices. They can either spend their money on frivolous items, and run out quickly, or if they want something special, then they have to save up for it, just like adults do. You can even help them out if you like. You can offer to match funds, meaning if they save up most of the money, you will help with the rest. Or you can 'loan' them the extra money, and take it out of their allowance, with interest and payment options if you want to.
This teaches them not only does money not grow on trees, but also the value of saving up for something you really want or need. You can encourage them to put part or all of their allowance into their savings account with incentives. For example, you could agree that once they have saved up a certain amount of money, say, fifty dollars, you will deposit 10% of that as well. Every time they reach a certain amount, you will match a certain amount. These are just some of the ways you can encourage your kids to save money.
The first thing you should do as a parent is start a savings account for them right after they are born, and try to deposit at least ten dollars a month in their accounts. At just ten dollars a month until they are 18 will give them over $2000, not including interest. Sure it won't pay for college, but it is a nice way to start.
As soon as you can, start teaching them to count money. Go out and buy some fake coins and bills to start with, and teach them what each coin and bill is worth, and teach them simple math using money. This gets them familiar with what it is and what it does, and gets them ready for the next phase, allowances.
Now you may be on a limited budget, and it may seem that an allowance is out of the question, but consider a few things before you go tossing this idea out the window. Number one, when they are ready to start doing chores, even simple ones, an allowance encourages them to not only do them, but to do them right. These can be simple, or a list of different things involved with each chore, and a pay amount for each one. This gives them an incentive to do the best job they can, because the better they do, the more they get paid. Now isn't this how it's supposed to work in the real world? The same is true for good grades.
Now consider that when your kids don't have an allowance, they ask you for things like candy, toys, video games etc. When you can't deliver or don't want too you usually get bugged and pestered until you finally give in. These things can add up, and in the long run an allowance is going to cost you far less. If you put your kids on an allowance plan, then they use their own money to buy the things you would normally have to buy. It also gives them choices. They can either spend their money on frivolous items, and run out quickly, or if they want something special, then they have to save up for it, just like adults do. You can even help them out if you like. You can offer to match funds, meaning if they save up most of the money, you will help with the rest. Or you can 'loan' them the extra money, and take it out of their allowance, with interest and payment options if you want to.
This teaches them not only does money not grow on trees, but also the value of saving up for something you really want or need. You can encourage them to put part or all of their allowance into their savings account with incentives. For example, you could agree that once they have saved up a certain amount of money, say, fifty dollars, you will deposit 10% of that as well. Every time they reach a certain amount, you will match a certain amount. These are just some of the ways you can encourage your kids to save money.
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