Teach the time value of money practically
Money is an important thing to discuss. People think that it is not worth discussing in front of children but in real fact, it is not a topic to avoid from the children. To make them saving worthy they should know the rules of finance and money.
Teach the difference between NEED and WANT
Children should be taught from an earlier age that NEED always comes to some steps forward than WANT. The basic things that we can’t live without or living is hard, is the NEED. So at first always has to go to meet the NEEDS, then the meeting of WANTS is a bonus. These lessons help them all over their lives. It is very necessary to differentiate the NEED and WANT. Your children should have the ability to choose between a curriculum book or a game CD.
Help them to save by making an attractive arrangement
Children are fanatic of colorful or attractive arrangement. Think for a while, the child not fond of studying can suddenly love it if you give him or her a nice table made with favorite character drawn on it. The saving arrangement is also like that. If you arrange them making a piggy bank or others as their liking, the tendency for saving automatically arises.
Give some opportunities to them to earn
Earning just not comes with the pleasure, it comes with so many responsibilities, we have to remember that and help out children to remember that too. So give some scope for earning of their own. For example, you can give some household chores every day and give allowances against these. They can know the value of hard work behind earning the income.
Set a goal of saving for them
Then you can help them to spend and save those earning and unused pocket money. Just advising for saving is not enough to save. You can set a goal so that they would get interested to save like if they want to have a bicycle, ask them to save for this. Then they can be more encouraged ever than before to do hard work for getting a thing on the wanted list.
Managing cash is one of the effective ways of good financing
If you can’t do the cash management for the time value of money you can’t be a good cash manager. In real life, all of us are cash managers who deal with it continuously. For this, you have to track the income as well as the spending to maintain the present cost and saving. After paying an allowance to the children, help them to keep track the earning and expenses by recording these. By keeping records they can also think and make a decision that how many days they need to reach the particular saving goal.
Give the feel of borrower and lender
You have set the goal, done the arrangement for saving, teach the cash management. Everything is fine. But things happen generally that your child is impatient of having his or her demand-able things. Then you may do one thing, borrow money with interest and tell that he or she can buy the things instantly but opt for a high amount of repayment as the saving is not enough.
The fact is that he or she has to pay the value of the impatience with the interest amount; otherwise the exact amount is enough to pay after meeting the saving goal. Thus they can learn about the patience of spending since childhood that they have to demand the things when they are ready for those Otherwise, things would be more costly.
Have the example of saving is a great way
Children learn by seeing things. They behave the way you behave. If you can show them your saving mentality, the interest in them can run on. So have a jar for the saved money and put money there every day, with the little contribution every day it will turn into a jackpot with time. Thus your children can have an interest in saving for the long term gain.
Communication about money
Most of the parents feel it unnecessary or fear of negative effect to communicate about the money. But it works so well beyond your imagination. To discuss money, its value, and talk about saving and investment, the advantages of saving for future profile and stress-free life.
Money apps for saving and investment
Teenage children can have a better option of technology to save money that is money-saving apps. These apps help to save and invest money according to different factors. These work by analyzing your saving behavior and goals. Some apps work just like the game so that the account holders enjoy the financing activities.
Various apps have brought distinct functions for the criteria of savings. You can download any of those on Android or iPhone and use those effectively.
Openly discuss the activity of money in human life, its honest and wise usage to have a secured life with all the enjoyment in all time.