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Ways to Motivate Your Child to Save Money

Kids saving money

If you want your kids to become sensible when it comes to their finances before they grow into adulthood, start training them right now. Now is the best time to teach your children about saving money while they’re young.

If you don’t do it now, it will be more difficult to motivate them when they become older. Teaching your kids the value of money is probably one of the most important lessons they’ll ever learn.

It may seem too early as they won’t be able to comprehend the concept of money, but you might be surprised at how well kids these days can learn anything at such a rapid pace. They’re much smarter than you think.

If you think about it, their minds are like little sponges. They can absorb a lot of information, and they learn from example. That’s why it’s our responsibility to set a good one they can follow, especially when it comes to money matters.

We know that, even as adults, it’s not easy to be financially smart or money savvy. But we can, as parents, impart the value of saving at a young age. To help you get started, Alpha Car Finance has come up with several ways to motivate your children to start saving money.

Start simple.

Buy your kids a piggy bank. This is a tried and tested way to get your kids into saving. Make the idea of putting coins into the piggy bank fun. You can turn it into a game. Set some goals. They can start with putting a dime or a quarter into their piggy bank every day. After a month, you can increase it into a dollar per day.

Open an account.

Once their piggy bank gets full, you can open a savings account for them. While you’re at it, have fun by letting them count all the money they’ve saved. This is an effective way to reinforce their motivation. Teach them the concept of earning interest. Show them how beneficial it will be for them to leave their money untouched as their savings grow over time.

Turn it into a matching game.

Earlier, we mentioned setting a good example for our kids. One great way to do this is to match their savings. This will make saving even more fun and make it feel like a game. However, you must be consistent. Always follow through with the amount you need to match. Remember that children will learn by example.

Praise and reward them.

Building your child’s self-esteem is important. Compliment them every now and then for being consistent. Small praises like, “Good job!” can positively reinforce their them.

Occasionally, you can also give them some rewards. It doesn’t have to involve spending money. You can give them an extra hour to watch TV or play games or spend more time with their friends.

Have open lines of communication.

Kids are smarter than you think. Never underestimate them. Be perfectly clear about teaching them the difference between what is necessary and what is not. Even some adults need to learn this, too. If they are thinking of buying an item, ask them if this is something they really need or just something they want but can live without.

Let them have jobs.

One of the best ways to teach children the value of money if to show them how hard it is to earn it. Give them simple chores and pay them, so they’ll understand that this is how grown-ups do it. The sooner they realize this, the easier it will be for them to save more as they know earning money is not like picking it up on the street.

Without proper guidance, your children will not grow up to be responsible adults. They may never truly learn the value of money. Your kids will eventually turn into adults. So, raise them right before it’s too late. Do you have your own ways to motivate your children to save? We’d like to hear them. Please share them in the comments below.