Teaching your child good saving and spending habits is beneficial for them to be financially fit. Instilling these good habits will not only help your children financially in the future, but can also help them think more efficiently. Here are 7 different ways you can help boost your children's saving and spending habits:
- Give your children an allowance—An allowance can offer your kids a way to make money by helping out with household chores. Giving your kids an allowance will help them have a good foundation to start saving and open the doors to teachable moments regarding healthy saving and spending habits.
- Avoid giving money so freely—Even if you're financially able to, refrain from giving your kids cash every time they ask for it. By doing this, you will be teaching them that they cannot expect funds just because they are wanting it at that specific moment.
- Teach your children about expenses—A vital life lesson that you can teach your children is about expenses. They will need to know what expenses are essential to everyday living and how to prepare for their own expenses one day.
- Teach them the importance of saving—Now that your kids have a means to make a little bit of money and they're well-informed of living expenses, it is a good time to teach them about saving. Also, it is a good idea to inform your kids about the different types of savings plans (ie: personal, emergency, and retirement). Be sure to reiterate the significance of hard work and how saving money can help you in the long run. Check out CB&S Bank's article on how to Teach Kids to Save for more ideas.
- Create a Savings Account for your children—When you feel that your child is responsible enough, head over to the bank and open a savings account with them. Some children's savings accounts will even give bonuses on their birthdays, such as CB&S Bank's Super Star Savers Club!
- Let your kids join the money discussion—One way to help teach your child good saving and spending habits is to include them in your financial conversations... Don't be afraid to talk about your financial status or make money decisions around them.
- Practice what you preach—Parents, your kids look up to you... Watching you is where your children begin to form their values and beliefs... If you have good saving habits, chances are your kids will be more apt to have good saving habits, as well. Therefore, show your children that you also have healthy saving and spending habits.