Teach your Children How to Save Money

· March 3, 2019
Teaching your children how to save money is the key to them growing up as responsible adults.

Teaching your children how to save money is important for countless causes. Mainly, you’ll be promoting thriftiness, responsibility and good administration at an early age.

Since ancient times, saving has been an essential part of the human experience. The Chinese and the Egyptians saved a part of the products they harvested to deal with future shortages. Later, the Italians began to save material goods.

Saving is an important mechanism to preserve your resources. It doesn’t matter if you’re young or old: not spending money is a way of managing your assets.

In children, this must be a recurring practice that parents must instill. Unfortunately, there are many parents who don’t give enough importance to teaching good financial habits. Teaching how to save money often takes a back seat to other lessons in many households.

That’s why we’d like to take a look at some tips to teach your children how to save money.

Why Teach Your Child Not to Spend Money?

Teach your kids how to save.

The reasons to teach your children how to save money are many. You must understand that, as a parent, you must promote good behaviors that will make your children be productive members of their community. Remember that many of the behaviors you have as an adult you learned from your parents.

Promote Savings

As parents, it’s highly recommended that you don’t just teach your child not to spend money. You should also encourage savings and teach smart spending. Strive to explain it all in a simple way, according to their age.

Tell them how important it is to save and the possibilities these will open for them in the future. This knowledge will make your child grow up under a philosophy of austerity. This is very important in the face of an economic crisis that your family may have to confront someday.

Saving and smart spending are both necessary to avoid waste. Begin to instill good financial habits in all your children. Offer them miniature jobs around the house and an allowance.

Then, give them a piggy bank or teach them how to open a bank account and how to manage it. Or simply offer to manage their finances until they can do it themselves. They will greatly thank you in the future.

Discover: Teach Your Children the Significance of These 5 Words

Encourage a Sense of Responsibility

Teaching your child how to save money can also encourage their sense of responsibility. Your little ones will be more aware of their possessions and what they’re worth. After all, you probably make a great effort to provide everything they need.

Encouraging a sense of responsibility with practices such as not spending money, in turn, can help your child use this value in other contexts. Responsibility is a necessary quality in many aspects of life. Therefore, everything that involves strengthening your children will help them be good members of their society.

Promote Good Management

Generally, children don’t have large expenses. However, it’s recommended that the money you give is well managed. Also, it’s necessary to educate your children about necessary and unnecessary expenses.

Correct money management is, without a doubt, one of the best behaviors that you can promote in your children. Start by motivating them to manage their belongings. Then, encourage respect for the resources of others and to buy only what they absolutely need.

Recognize the Value of Money

Money has a value, and your child must learn to recognize it. You should try to help your children understand that money is just a tool and that they should learn how to use it properly. In addition, teach them not to spend on superfluous things or on fleeting whims (often promoted by the advertising industry).

Also, we advise you to limit the money you give to your children. Help them understand how hard it is to earn it and how you don’t have a never-ending supply of it. This will teach your kids to value what money can do and will also prevent the appearance of phenomena such as “rich kid syndrome”

Did you know? “Rich Kid Syndrome”: A Mindset that Results from Parenting

Consequences of Not Learning Finances at an Early Age

Not knowing how to manage money at an early age can bring countless consequences. Spending money carelessly promotes waste and will, most likely, cause problems when your children become adults. Also, not having a savings account will leave them exposed and completely helpless in the face of a financial quagmire.

In addition, failure to teach your children about finances largely contributes to consumer culture. If you don’t instill the importance of saving in your children at an early age, you’ll create irresponsible, poor administrators. Your children will think of spending money as something recurrent and normal.

Conclusions

Money is one of the forces that move the world. Neither you nor your children are exempt from being influenced by marketers and advertisers and becoming addicted consumers. Therefore, it’s crucial that you, as a mother or father, set the example as to when to save and when to spend money.

Children are the reflection of their parents, and they imitate their parents’ behavior. Try to give your children more than money and things. Give them your example through your actions. In conclusion, give them the gift of knowing how to use the powerful tool that money is.

  • Denegri, M., et al. "Prácticas de ahorro y uso del dinero en pre adolescentes (tweens) chilenos." Universum (Talca) 23.1 (2008): 24-38.
  • Gómez, L., y Edisson, J. "Aproximaciones a la comprensión de las representaciones sociales sobre el ahorro y el uso del dinero en niños de 6 a 7 años." Revista Finnova: Investigacion e Innovacion Financiera y Organizacional 2.4 (2018).
  • Olivas, B. Ahorrar en casa. Selector, 1995.