Ways to Teach Your Child How to Save or Spend Responsibly

Wherever you are or whatever your job can be in Singapore, you must already know the value of saving money. Most of us already have bank accounts and retirement plans because of that. But it isn’t necessarily a welcoming idea to kids. Though teaching them the value of saving is essential, they might not easily commit to it given their young age and understanding of money. Even so, there can be some ways for you to teach your child how to save.

Communicate
Initially, you would have to teach them the difference between wants and needs. Because it can be hard to make younger children understand this, try to use the most basic examples, like food and clothing. This will help them realize the things that they need and the things that are sometimes unnecessary. When they begin saving, communication is still very important. Praising them can be a great way to keep them motivated. If they start getting tempted to spend on smaller things, rarely allow them to do so and tell them why.

Be a Role Model
It won’t necessarily be easy to teach children something if they don’t see you actually doing it as well. It is important to lead by example because simply because your children look up to you especially at a younger age. If possible, you can also put your own jar of money next to theirs so they see that you’re putting in some savings. This will usually make them do the same.

Let Them Make Mistakes
In saving, and in other aspects of life, a great deal of learning can come from mistakes. For the children to know what to do and what not to do with their money, they need to make errors along the way. Parents usually think of intervening and keep their kids from making mistakes. But because we are always bound to make mistakes, in reality, it would definitely be better to teach them about it at an early age.

Let Them Earn on Their Own
Having them earn money on their own can be a great practice and opportunity for them to see the value of saving. It also serves as practice for the real world, showing them how hard work can bring them money. Pay them even just a small amount at first if they finish their chores, for example. They might also eventually learn how to spend that money wisely since it’s the fruit of their own labor.

Help Them Create Goals
As mentioned earlier, it will be hard for children to grasp the idea of saving. But, if you give them a goal or something they should save for, that can be a way to motivate and teach them. If they want to buy a toy, tell them that they should save a certain amount of money so they are able to buy that toy. That, then, becomes their goal.