Raise money-smart kids by instilling financial nuggets of wisdom at an early age. Get tips on how you can do this here!
One of the most important things you can do for your kids is to introduce the concept of saving. The kids who learn about money and savings at an early age tend to start their own savings earlier. In the long run, this habit is rewarding.
Here are 5 ways in which you can educate your kids to save:
#1 Organise your money at home
Loose coins should be kept orderly. Something as simple as organising the money in your wallet is a strong statement for the kids. Money is not just a piece of paper or metal but it has value beyond its looks and therefore every cent must be spent and kept wisely. Let them know how saving money is appreciated.
Drive the lesson home by paying a visit to a bank, letting them see how money is serious business. Once your child is ready, help him open his very own account. He can deposit the money he has and you can teach him that money grows when it is invested.
Make sure to choose a kid-friendly savings programme, such as the OCBC Mighty Savers® Programme, which lets you open a joint OCBC Monthly Savings Account with your child under 16 years of age.
Then educate your child about the savings account. The OCBC Mighty Savers® Programme provides you with monthly e-statements, helping you illustrate financial concepts such as interest, and track the numbers as well. You can also encourage your child to play the Mighty Savers® Game App, which helps kids understand the importance of saving in a fun way!
#2 Create goals with your kids
Saving is important but saving without purpose is just a notch better than spending without thinking. Talk with your kids about how you are planning to spend your savings. It could be for their tuition fees, their new dress, next summer’s vacation, or just for a rainy day.
If ever you think that their target is unimportant, suggest to them other essential and interesting things on which they can spend their money. With regard to spending decisions, you still know better and must patiently bestow financial wisdom unto your kids.
Then ask them how they look forward to using their own savings and what their timetable is. If their plan is unrealistic, try to explain to them that their money will not be enough for their goal so they either set aside more from their allowance or they save for a longer period of time.
Read on for more tips!