We live in times when it is important to not only earn but also learn. Check out the Five ways to save money.
What is this article about?
- Power of remuneration and investing
With the fast-paced lives we all live now, it is important to teach our children about the importance of hard-earned money and saving it. This will not only help us limit our expenses but will majorly help our children grow up knowing how to save money and assure their own financial security.
The first one is pretty simple and out there. The old concept of giving piggy banks to children is pretty useful. This lets them have a small bank of their own which makes them feel important and empowered. It also helps them get good at counting, calculating, and making plans when they think of how much they have in their piggy bank and how much more can they put in it before it gets full. For small children, it is the best way to save money.
Part of family meeting
After a certain age, make your children a part of your family meetings related to budgeting the expenses. Allow them to sit and participate in this meeting. This will allow them to understand how budgeting expenses work. They will get a hold of the concept of the budget from childhood and will not be suddenly taken back by it when adulthood hits them.
Make children earn their remuneration
Making children do tasks in return for remuneration is a brilliant concept as it teaches kids the importance of earning their own bread — not in literal terms. Assign normal and easy tasks to your children such as doing their own dishes or making their own bed, and then at the end of the week reward them with an already-decided amount of money which they can add to their piggy bank. This will also help them understand the importance of hard work.
Go ahead and buy the stuff for their daily needs such as school supplies, clothes, food and some basic toys. However, when it comes to buying extra clothes or toys, make them spend money from their own piggy banks. This way they will spend cautiously, and that will be a blessing for you when the kids grow up as they will caution away from spending money unnecessarily.
Invest money for your kids in some saving bonds or mutual funds once they reach their teen years. However, don’t do it alone. Make them sit with you and explain to them how different methods of investment work and help them decide which method do they want to opt for. They will not only learn to save money but will also learn how to multiply the money. This will be a gift from you for their upcoming adulting struggles.