Saving money is an important aspect of everyone’ life.The money which we save over a period of time can be used in various long-term goals of life. Long-term goals like getting higher education, buying a home, marriage, vacations and medical emergencies involve a huge amount to be spent.
Many times, it becomes impossible to arrange such high amounts on an immediate basis. Therefore, the need for savings arises where you keep on putting aside small amounts on a periodical basis from your earnings and saving it.
Gradually the small amounts saved become a big amount and helps in meeting out the expenditures as mentioned above.
Now, when we have understood the importance of saving, we must also understand the importance of inculcating the habit of savings among our kids.
Following are the methods that we can use to motivate kids for adopting the habit of saving money
1) While allotting pocket money to your kids, make it mandatory for them to save a fixed portion each time. You can bring them a piggy bank and open their bank account where they could deposit their saving every month.
2) Reward them if they are able to save more than the mandatory limit. If one of your kids is able to save an amount more than required then you can reward them with a gift or by putting the same extra amount from your side in their piggy bank or bank account.
3) If your kid wants to buy a gadget or any costly thing then make it a rule that they can buy it only from their saving money. You may also split this amount into 50:50 or any other desired ratio. The point is to make the kid understand that they can make their big purchases if they save money.
4) Make a rule for the kids to save the money which they receive as gift on occasions. The money which they receive on their birthday, any festival and gift by any relative should be saved by them.
The point of inculcating the habit of saving money among kids is important because good habits are supposed to be developed from childhood only. If the kids understand the importance of saving money and how it can help them in the future then this could help them in developing their future.
Make sure that they don’t become a miser while getting into the process of learning to save money. They should learn to spend wisely.