5 ways to encourage your children to save money

Saving money... Yes, we never tire of talking about it! That's because we know how important it is for both adults and children. Many adults may still find saving money challenging, but what if we teach our children from a young age to help them adopt this habit throughout their lives? Imagine how much it will benefit them in the future! They will definitely thank you later.

If you're interested in helping your children build a secure financial future, it's important to teach them how to handle money first. You certainly don't want to see your child repeating the financial mistakes you made in the past. Remember when you used to spend your weekly allowance in two days? Don't worry, we won't tell your parents.

Teaching children the basics of saving money is divided into two parts: the theoretical part and the practical part, which we will help you with. First, you need to explain the concept of saving money to your children and the reasons why it is important. Once you've completed the theoretical part, you'll be ready to move on to the practical part. That's why we have gathered the top five ways to encourage your children to save money.

Teach them the difference between needs and wants

This step is crucial as it is necessary for children to distinguish between things they want and things they actually need. For example, their desire to have a new toy is not as important as their need for food. Start with the basics and explain to them that shelter, food, and clothing are essential needs, while a new toy is a want that may be enjoyable but not necessary. After explaining the difference, how about you turn it into an interactive and fun activity with your children? Take them on a tour around the house and ask them to categorise items into two groups: wants and needs.

Introduce them to the piggy bank

Children naturally love exploring and enjoy learning from new experiences. So why not introduce them to their new friend: the piggy bank! After purchasing the piggy bank and explaining its purpose, create a rewards program for them, allowing them to earn small amounts of money to put into the piggy bank. Gradually, the amount in the piggy bank will increase, and they will become more enthusiastic about saving. Then, set a date to open the piggy bank and count the money they have collected. Most likely, they will want to spend all the money in the piggy bank, so you need to emphasize the importance of saving a portion of that amount for the future and allowing them to spend the remaining as a reward.

Open a savings account for your children

If you have reached the third method, it means your children have succeeded in saving money using the piggy bank. This is the perfect time to take them on a visit to the bank to open their own savings accounts. Make sure to familiarize them with banking concepts and basics such as savings accounts, ATMs, bank cards, electronic banking services on our banking app, and how to keep track of the money in their account.

Give them opportunities to earn money

Now that your children understand the importance of saving and its benefits, you can teach them the significance of earning money and that it doesn't grow on trees. Start by assigning them simple tasks, such as household chores, and once they complete them, reward them with a small amount of money. To make it more enjoyable for them, you can design a weekly task plan and assign tasks to each of them throughout the week. This way, children will learn that they need to work to earn money, and they will have the opportunity to save additional amounts in their piggy banks at the same time.

Set short and long-term goals

How beautiful it is to dream, set goals, and work to achieve them! Encourage your children to set saving goals, both short-term and long-term. For example, they can have a short-term goal of saving a specific amount of money to buy a desired toy, and a long-term goal of saving for something bigger, like a bicycle or a gadget. This will instill in them the importance of planning and patience, as well as the value of delayed gratification. You can help them track their progress and celebrate when they reach each milestone.

Remember, it's never too early to start teaching your children about money and the importance of saving. By implementing these five methods, you will provide them with a solid foundation for financial responsibility and a bright financial future. Good luck on this exciting journey of teaching your children about money!