This blog is about Piggy Bank For Kids – How To Form Saving Habits Early In Children. Preparing the kids to save money make them a good human being, who understands the value of money. Kids from an early age should understand the value for money & budget planning. All the habits a child develop starts from the early age. The best age to introduce the “Concept of Saving Money” to be known is the age 7-10. If you want to make your children responsible, you would have to start early! Every parent gives their child pocket money – how much is too much?
Below mentioned are the few points, we can keep in mind to make our children more responsible and make them develop good habits:
Piggy Bank For Kids – How To Form Saving Habits Early In Children? How to teach kids value for money? Never get your child everything that he asks for. If your child wants an expensive gift, ask him to save money for it first, atleast sometimes. Following this habit will make your child learn the true value of anything. You can even get a picture of the toy printed and place it right next to the piggy bank of your child so that he is always aware that he needs to collect money in order to buy his favourite toy. This will make your child stay focused on achieving their goals.
Get them a Piggy bank / Target Box / Moneybox:
Guiding your child to put the spare change in his piggy bank is the best idea to make your child develop the habit of saving money. You need to make your child aware about the disciplined way of saving by not letting him open the piggy bank till the time it is full. This would make your child waste less money and make him realize that the saved money will be used up in future in case of an emergency.
Encourage your child by matching what they save:
Whenever your child saves a certain amount of money, add in some portion of incentive from your end to encourage him. This would make him save more and more money as he would think that my parents are also helping me fill up my piggy bank. For instance: If your child saves Rs. 500, you can add Rs. 200 to his savings. He will take it as a reward and be encouraged to practice this habit forever.
Teach some investing methods:
Guide your child about how to invest his money and what does investing actually mean. You can search for child-friendly investing schemes. For instance: Get them a trinket box and ask them to fill it up. Once it fills up with money, you can transfer the money to their bank account telling them that this is their personal saving, which they can use later in their education or some other good things.
Practice what you teach them:
Children always learn things from their parents. If parents have the habit of saving, kids will also have the same habit. You can set up a saving container in your home and every member of the house can make his/her contribution to fill that container with money. This habit will make the children learn the importance of savings.
The little changes in your child’s lifestyle can make him a better person. Along with money-saving habits, you need to make your child aware of few other principles as well. There are certain financial rules that the child must always be aware of. Let’s discuss them in detail:
- Saving: The most important lesson that you will be teaching your child ever is to make them aware of the importance of savings. If they learn the habit of saving from an early age, they will surely become successful people in their future lives. Inhibiting any good habit from the beginning results in positive outcomes in the near future.
- Earning: You can guide your kids to earn the money in a correct manner without following any fraudulent methods. Children should be taught to earn money in an honest manner right from the beginning. So that when they become adults, they are well versed with the positive and negative effects of earning.
- Giving: Always teach your child to be compassionate towards others and follow the practice of sharing. You can also guide your kids to get involved with the charitable organizations you are involved with so that they know that they have to follow it as well. If the kids involve them in doing some charity, they will not always be running after money, which in turn makes them a better human being.
- Buying: You need to make your children understand the difference between wants and needs. Wants are the unwanted demands that kids make seeing the other children around, which you should never fulfill. Needs are the basic requirements of the children, which should always be fulfilled. Teach them about smart buying so as to help them save more and more money and increase their earnings count.
- Encourage children to use Cash for small ticket purchases: Don’t make your children rely on the credit or debit cards for every single purchase. Instead pay by cash for small purchases such as buying a cup of coffee, a packet of chips, movie tickets, etc. This way, by watching you, they will realize that for each small buy, you need to spend your hard-earned money.
If our kids will understand the use of their piggy banks and the importance of savings, they can be transformed to form a better future for our nation. It will also help you in long terms as your children can be your support forever in all the charity events and other saving programmes. So start today to make a better tomorrow for your family.
It is important to teach the kids the importance of savings and how to spend money. Then depending on their ability to save & wisely spend you can allocate pocket money appropriately every month or every week.