Teach a child to save money is not an easy matter. There are things that are difficult for us to discuss the child so that they can understand what we mean. And one of them is the importance of saving. Before we take a child to set aside a little money to save his own interest in the future as well as to educate him that saving money is something everyone should do to prepare in troubled times.
Saving money is set aside a little money set aside from what we’ve got or what we try. With a variety of needs that we always need, then saving is a complex planning. Therefore the most important thing before teaching a child to save money is to give understanding to the child about the definition of saving, the benefits of saving money and why we should always save. So that a child knows why he should set aside allowance that should be able to buy him something he likes.
The following are steps that can be done to teach children to save;
Stage 1
Discuss the needs and desires
Needs and wants are two very different and contradictory. The benefits will we get when we ask a child to discuss the needs and wants is a child will know that what he dreamed to have been whether the needs or desires. Desire is something that can be postponed, while the need is something that can not be delayed and should be immediately to be met.
Stage 2
Set aside money for snacks
Each child must be given money every day at school. Therefore, try to take the child to set aside the allowance. The amount set aside depends on the wishes of the child. Better to start from the smallest amount, then increased the number of every 1 week until a stable amount of 30 percent of the amount of money it receives each day.
Stage 3
Make a wish list
Each child must have had a dream about something. Therefore, make a list of the wishes of the child starting from the smallest to the largest. Then ask the child to learn to achieve the intention of saving money that has been spare. So when the child is getting his wish in accordance with the list that have been made, then the child gain a valuable lesson that if she saved and tried in earnest. So every wish will be fulfilled.
Stage 4
Parental support
Parental support of children is an important thing. Despite being on different sides. However, parents will always support the child when the child need not be tempted to save money on a particular day. At that time, parents should be flexible and should always be reminded about the benefits of saving, as well as the purpose of saving the child. Although in the initial phase of teaching children to save money there are major obstacles. However, parents have to convince the child to be in earnest to do something that he needed some day. It is saving money.
Suggested Reading
http//kidmoney.about.com/od/savingmoney/ht/savemoney.html
http//life.familyeducation.com/money-and-kids/parenting/36322.html