Dec 12

How to Train Your Kids to Save

Many parents in Singapore would want to train their children on how to spend and save their money. As adults, we already know how to handle our liabilities and assets so we need to impart that to our kids. Start them young and let your children surprise you, in a positive way, on how they could effectively spend and save their own money in the future. Here’s how:

kid-saving-money

  • Train your kids to be responsible savers. You can train your kids as early as one or two years old. You can prepare a jar where they can store the money that they receive from you and some relatives or in the future the savings from their allowances. This can practice their saving abilities and once they grow up, they can see the results of their savings, which you need to store in a safe place or deposit in a bank account.

 

  • Teach them the importance of money. As parents, we need to teach our kids the value of money and how important it is to not waste it. Teach them how every penny or dollar counts.

 

  • Teach them the difference between wants and needs. Train your kids to just buy the things that they need. You can teach them to buy the things that they want but first they need to evaluate if whether those things can still be used in the future. Teach them how to delay wants and prioritize their needs.

saving_with_kids

  • Train your kids to value hard work and rewards. You can let your kids take summer kiddie jobs or sell lemonade and other stuff they want to sell. Let them feel that money should be earned through hard work and that if they work for it effectively they will get rewarded. Thus, more chances of saving their rewards for future use.

 

  • Share stories and let them read books about successful people. Aside from the usual bedtime stories, you can share your experiences with your kids or read a book about famous and successful people in history and most especially in entrepreneurship. Teach them that success does not happen overnight and that they have to save up and invest on things that could really make them successful someday.

 

  • You have to let them be financially independent once they reach a certain age. Let your children become the financial independent adults they are destined to be. Once they reach 18 or if they graduate from college, let them practice what they have learned from you. You can help guide them but do not let them be reliant to you forever.

We should all save some money

 

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