Teaching Kids How To Save

How can parents instill in their children responsibility about money? Experts say,

the value of money-saving, can and should be instilled on children as soon as they start walking. At two or three years, a toddler can absorb the basic concept of saving.

Some helpful tips, from online sources, in teaching your children to be money-smart and encouraging them to save for the proverbial rainy day.

* Set an example of frugality. Example is still the best single influence on

children’s attitudes.

* Guide children in choosing wisely which toy they can have, what snack

to eat and which dress to buy, to enable them to live according to their

family’s means.

* Introduce a piggy bank to children aged six or seven, who are already

capable of mental arithmetic operations.

* By age eight through 10, children should be ready for their own

savings account. Kids should participate in bank-hunting to spark their

interest.

* Give children regular allowance to make them feel in charge. Parents,

however, should give only an amount that a child can handle.

* Parents shouldn’t just give more money if the child overspends his or

her allowance without justifiable reason.

* Encourage kids to take on odd jobs such as selling cookies,ice candy

or handicrafts, tutoring younger children, running errands and doing

chores outside the usual household responsibilities.

* With teenagers, start involving them in deciding on family expenses.