Teach kids to save: 5 important money lessons for your child

We all want our kids to have a comfortable life. But no parent wants their kids to grow up to be adults who have no idea about financial planning or responsible saving and spending habits. Here are 5 important money lessons to help teach your kids about saving and goal-setting!

Save to spend

Teach your kids to save up if they want something. Get a couple of piggy banks and label them 'spending' and 'saving'.

When you go to a toy store, have your child set a goal on a toy. Nothing too expensive though as you wouldn't want them to take months to reach their goal. Otherwise, they'd feel demoralised and give up.

Overspending=no money

Children should learn money does run out when we overspend. Teach them to make wise choices when budgeting and purchasing, so they can stretch their dollar.

Get your kids involved in financial decisions during grocery shopping. And explain to them why you buy everyday provisions in bulk and in family packs.

Long-term saving

It's good for kids to learn long-term saving habits. Teach them the sooner they start saving, the bigger their money will grow over time as long as they don't touch that money.

Encourage them to set bigger goals. For instance, an xbox console in 2 months versus a plush toy in 2 weeks.

Responsible credit card spending

Teaching your bigger children responsible credit card spending is really important! Explain the consequences of credit card debt and bad credit history.

Once they are old enough to own a credit card, they will then know to only charge on the card what they're able to pay-off in full. It's also advisable for you to enforce the practice of spending within your financial means.

Future investments

It's never too early to teach your kids about future investments. We're not talking about blue chips and bonds here.

You can start off with something as fundamental as education. Go through the education pathways they can choose after secondary school. Make them aware of all the costs involved. For instance, overseas education would require you to take education fees plus accommodation into account.

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Money Managementfinancial planningteaching kids to save