Children have avid demand to spend money. Take any occasion or festival, you will find your children with a long list of items which they want you to bought for them. It is not right to suppress their demands, but yes, seeing the competition level of the world and increasing value of money, it is required that every parent should teach their children the importance of saving money.
Parents can adopt several ways to teach their children how to save and manage their money. Such as
Now days, children are becoming much smarter and informed very early than when their parent used to be. So, start teaching them the importance and benefits of saving money early. Tell them how if they save money now, can help them in making their future secure. Tell them where and why you work? Explain the importance of money you earn from your job and how it will help you in running your house smoothly?
Always try to make them aware about the changing value of money and the benefits of saving money in accordance to change in the monetary term. Don't force them, let them hold their own choice to save money. This will help them in making saving money more enjoyable and satisfying.
Teach them how they can save money by not wasting them? This can be taught easily by making them aware of how wastage of water, food items, electricity etc results in wastage of money. Teach them the efficient and relevant use of these entire materialistic things.
Teach them the difference between things they 'need' and things they 'desire'. This will help them in managing their money by keeping things they need on priority. This will also help them in removing things from the list they want to have.
In respect to things they want to change or replace, tell them whether it is that much necessary to change it or by just repairing some part that thing will start working as early.
Some parents give their children pocket money in the starting of month, so that the children can plan how they will use that money more efficiently for the whole period.
On the other hand, some parents give money to their children after completion of whole month depending on the household work or help they have given in that month. This is like giving salary only and this will teach them the importance and value of money.
According to the money earned, the children will plan their finances or manage their money.
Tell them funniest and enjoyable ways of saving money. Like, make a piggy bank of some toy or shoe box etc and make it attractive. Make an attractive bank card for your kid and teach him the way of doing banking in your home first in a simpler and enjoyable manner.
Take your kids to the banks and tell them how banking is done. Tell them how saving money can help them in making their future secure. Explain them how the bank and its employees work to manage their money?
How the interest on money will work as added value on the whole amount? and, how importance is it to manage and keep the passbook given by the bank?
Teach your children good shopping habits. This can be done when you take them for shopping. Show your good behavior as an example, like don't rush to buy each and every thing, make a list of items first before going to buy them, maintain a budget and try not to exceed the limitation, and while purchasing expensive item show your children the importance of doing pre-research so that the thing bought will present right value of money spend on it.
After teaching them good shopping habits, you should allow your children to purchase things. This will help them in understanding the value of money and the importance of planning and managing money prior to spending.
Commonwealth Bank came up with a Dolomite account for children, who are under 11 years of age, with some attractive and funny schemes. Another bank, Bank West, came up with a Kids Bonus Account for children below 15 years to encourage habit of saving money in them. The account has several attractive features like no fee for account opening, and 10% of interest for money saved.