As you teach your children, various life disciples, do not ignore financial discipline – this is one of life’s most important disciplines; our goals can only be fulfilled when we are successful with money. Cultivate the habit of saving in your children – It is a different thing to hold trust accounts and educational policies for them and another to teach them to save themselves.
Below are some guidelines;
1. Get them Piggy Banks/Money Boxes: Start by getting your child/children piggy banks, let them deposit 10% of every money they get into it. Set savings targets for them, targets do not necessarily have to be an amount; it could be for saving continuously for a certain period, say 6 months, 1 year, or until the money box is full.
2. Reward their Efforts: Reward them for putting monies aside, no matter how small! At the end of the period which you decide, if the amount is substantial, add it to their trust accounts or allow them to buy an item of their choice with it. Make it fun! They will be proud of themselves and encouraged to save more.
3. Responsible Spending: As much as we love our children and will not want to see them unhappy, we must learn to say no to certain requests, or better still, let them use their savings to make those purchases so they appreciate the efforts you put into making money and the value of money.
4. Lead by Example: Children learn mostly by observation- practice what you preach. Let them see you practice responsible spending, let them see you deposit money in your own piggy bank, and they’ll copy you.
As a new year begins, encourage your children to save as part of their new year goals!
Teach them to Start Early.