Saving is something that you should encourage your kids to do from a young age. Often it can be hard for them to initially grasp the concept. However, with a few tips, it is possible to get them into the habit and help them have a positive long-term relationship with saving and money.
The difference between want and need
This is something that children should learn initially. Necessities include clothes, food, and bills, but equally, this does not mean that expensive clothes or takeaway deliveries are necessary. Knowing the difference can allow children to recognise what is a thing people need and what is a thing they want.
Pocket money should be earned through work. This is important, as it makes clear that you get rewarded for what you put in. You should encourage younger children to put money into their piggy bank, and then when children are older, you can encourage them to put money into an account.
Setting a target
It is very likely that a child will have something specific they want to save for. This is good- a thing to aim for makes it easier for them to save. For example, if you have a holiday coming up, then encouraging them to put money aside will mean they will be able to enjoy themselves more spending their own money.
Equally, this is something that you can help them with when it comes to spending. For example, the amount of money spent on stickers or bubble gum could be put aside for a trip to the cinema. Getting them to write down what they spend makes this easier to track (equally, this can be a good habit for adults too!)
It is also possible that you could provide additional incentives, such as a bonus, if they hit a certain target amount.
Talk to children about money
To be fair, for many adults, it can be difficult to talk about money. This is why it helps to demystify what money is and how it works. Guiding children through the process will make it easier for them in later life.
As well as talking to them, it is important to listen. If children have questions, it is important to answer them as best you can without talking down or simplifying it too much.
Set a good example
If you want to encourage children to save, then it helps if you also have a savings account yourself. It is important to demonstrate a good example, so it is not just giving people the theory but also showing that you practise what you preach.
We can help
If you are unsure of how to word a conversation with children about money, we can help. There are also accounts available that can be used to allow your children to save, trust funds, and other options. We have always prided ourselves on offering both the resources to support our clients and the customer service they deserve.
For more information or to discuss your requirements in more detail, please contact us today.