Raising children is no cheap job. Never mind the nappies-and-wipes expenses of the first couple of years, it doesn't get any cheaper once they are potty trained either. Once essentials like a roof over their little heads and dinner on the table are covered, they will then get to an age where they start wishing and wanting for everything from toys to cool trainers. Chances are, many of us parents will start feeling like human ATMs.
The thing is, helping your children develop a healthy attitude towards money and teaching them how to save, will not only help them actually save for the things they want. It will also -hopefully- set them up with some healthy financial habits for life. In fact, research has revealed that children develop attitudes towards money at a young age, even before they turn seven. Also, they are likely to imitate the financial behaviour of parents and other family members. This means, of course, that it is so important to start building good money-habits as early as possible.
Here are some simple steps to get them saving:
Lead by example
Like most things, leading by example is the most important thing you can do to teach your children the value of money and the importance of saving. Let them see you work out a budget for a family trip to the cinema or a weekend away and hear you talk about things you need to save for. Try putting coins into a jar and tell them it is your savings jar. Talk to them about mum and dad having to work to make money and that we all have to save for things we want to do or buy.
Open a children's savings account
Opening a savings account is a good way of encouraging your child to save regularly. This will help them to develop a good habit when it comes to savings for life. Its also important to show your kids that saving leads to rewards in the future. Give them a date for when they can withdraw from their account, such as before a holiday. Build up anticipation for this day and make sure they know that their effort to save has paid off.
Bring them to help you with your grocery shopping
Let your little savers hold the shopping list and make their way along the various aisles. If you have time, stop a while at each product and get your kids to compare prices of items on the list. Allow them to make decisions on what to buy, so that you stick to your budget. Give them a few Euros and let them go to the counter with a few things of their own. The aim is to come back with as much change as possible, and reward this by allowing them to keep the change for their savings jar.
Let them earn money instead of giving it to them
Our kids deserve the moon and more. However, allowing them to earn their own pocket money will be more rewarding for them, than simply handing them money for what they want. Small things like cleaning their room, doing dishes or sweeping the kitchen are perfect ways to earn two or three Euro. Try have them save up their coins in a jar until they have enough to buy a toy, book or item of clothing. This will encourage a healthy attitude towards working for what they want.
Your budding little budgeter will thank you in the future, for setting them up as a saver rather than a spender. These small steps will give them the skills and attitudes they need to be smart with their money!
