How should parents teach their children to save money

Tuesday, February 21, 2012

How should parents teach their children to save money

Saving money has never been easy. It requires great determination, and reason. Parents know what it takes to save every single dime, and the best gift they could ever imagine providing their children is tips and tricks to save money.

Many parents make the mistake of providing their little ones with everything they demand. The more you fulfill their demands it is more likely that they will fail to understand the value of money. Children should be made aware of how difficult it is to earn every single dime. Unless a child is made to understand the difficulties of acquiring money, he will never be able to give due significance to the fact that saving money is crucial when he grows up.  


Parenting is not just about inculcating all the good traits in a child, but also about making a child understand the harsh realities of life. The truth everyone knows is how significant the role of money is in life. Many parents never hesitate to offer large sum as pocket money to their child. Large sum as pocket money will definitely make the child happy, but it also makes him rich in a smaller way, without putting the effort that is required to earn it. 

The best lessons in life are learnt in crisis. Create small goals for the child, ask him to score high grades in his school, put a cash reward for his achievements, and then offer money as a reward, if he fulfills the goal. A child will thus learn to give value to the money he has received. The one who gives value to money will also learn to save it. 

Children should never have it easy. Parents have to ensure that they themselves don’t overspend. Children are fast learners, and they will notice how their parents spend money. Parents who are not careful with how they spend money will pass on the wrong message to their children, which will lead them to wrong path. 

Children follow their parents. Many even consider their parents as their idol. The way parents handle money will create impact in the minds of their children. It is important to have the attitude to save money. A parent’s attitude will reflect on the child, and he will keep it on his subconscious mind.  Parents should set their actions as examples. There is no way parents can expect their children to learn to save money, when they themselves go all over the town, splashing money and wasting their hard earned dime. 

Parents can also choose to open a mini bank account in their child’s name. Encourage the child to deposit money every month or week, out of the pocket money he or she receives. The habit of saving money early on as a child will go on and make him a better person with much greater control over the money he will earn in future. Savings is a habit, and parents should stress on the need to develop the habit of saving money in their child.

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