Teaching the Concept of Saving to Children

Piggy banks is the best
( my son remove coins from my purse and save in his Piggy bank ---------so sweet)
Ok seriously, it is our duty to teach the kid for saving...........
We discuss money matters before our children and ask their opinion and ideas. This way they get to know the income and expense of the family and readily participates in the money matter issues.

Some parents hides the money matters from the kids and their kids thinks that parents have lots of cash and they go on demanding things..........

It is always better to be open with the kids and give importance to their ideas and appreciate their ideas.
Encourage them to save money ( some times it is too embracing when my son says, MUM it is too costly, forget it,we can manage without it).

So teach them to save but not to be a MISER

 

Hi Outofthebox...
Good thread... I think its better to start when they recognise the currencies... my mom used to send us to buy things from shops giving details of how to buy and what to buy it helped us realise the worth of money.... like Nija says one must be careful not to make them misers

Hi Nijasav...
Wow you have taught them well I would like to know how you handle the situations like this

I mean how did you convince them its ok to buy the thing if it is essential...

 

my daughter has a kiddy bank from 2.5 yrs onwards..she now has 2 of them..when her dad is back from office or i am back from grocery, we give her the change and she keeps them..and saves them..when i say that i dont have money for something she will say " i have money ma..i will give them to you" Also, we shouldnt budge in for everything they ask for..tell them its costly,we wont be able to afford it..
earlier i was working and her dad was in a different place..so i used to buy her chocolates and all..but now i dont work so if she asks for something costly, i tell her mama doesnt go to office so she has no money..ask when your dad comes..by the time her dad comes, she forgets about it..
Also saving in my opinion doesnt mean only money..we should teach them to save electricity,water,food etc..If she switches on lights or wastes water,then i tell her the bill for this month would be paid from her piggy bank..and believe me she never puts on AC,lights unnecessarily..she now asks me" its daytime,then why are you using lights now"..also she doesnt waste water..
yet to find tricks for stopping wastage of food..she eats at home without wasting but she does bring back her tiffin once or twice a week..but from the last week i am making her eat the same after coming from school(it will be fresh as i pack just 5-6 hrs before that).have to see for improvement in this food aspect..

 

My elder son started his savings from the age of 4.
We have to teach them the importance / necessity of things.
But never overspend, when we are able to buy the same things in the same quality in less price.
I teach them to check out in two three shops before buying it.
Now my son is 12 years and before spending the money, he checks and calculates....... But IAM FORCED TO SAY THAT HE IS A KANCHOOS..............Iam trying to correct him. Any ideas friends??

 

Well Done Sushmavja

 

Hi Sushma...
Thats lovely and it brought back memories of my childhood and you are right we need to teach kids about saving electricity , water, food and other resources..

Nijasav...
You need to wait and watch when he acts miser then you can tell him whats ok to spend for and whats not...with good reasons am sure he will understand if we dont give reasons they wont heed... Todays kids are smart they will learn fast...

 

out of the box,

need of the hour is to teach children about being conscious about money, spending. I believe, it is a waste of accumulating wealth for your kids, if you don't teach them effective utilisation of the same..

the concept of money can be introduced as young as 3-4.. i introduced the saving piggy bank to my daughter at 3. whenever she used to get money as gift, it used to go into her piggy bank. (though she knew what it was and why you need it, she did not know the value of it then..) .

and same goes to my son too..

The passbook with the accumulating and increasing number was always an great booster.

you can infact convert all the coins (in turn teaching them) into notes and take them along to deposit it in the bank..that way they learn banking functions too...

infact some things we did discuss in a few threads long back..not able to retrace them..
http://www.indusladies.com/forums/schoolgoers-and-teens/34717-money-canteen-7-yr-old.html

and why chores and money should not be linked..
http://www.indusladies.com/forums/schoolgoers-and-teens/40112-chores-and-children.html

now it is more than 3/4 years since we wrote this..

a part of their savings goes help a child with cry or any charity. every year the kids want to give away a part of their saving for the year. when they started realisng that they were more priviledged than many out there.

I think i have written this somewhere that for every fizzy drink they forego, i will double the amount and add it to the charity..a positive manipulation..

Today, whenever i find a good amount in their account, i move them to a FD for them. and keep them informed.

i don't need to talk about compounding and the benefits of saving, as they are well aware of that, seeing the parents and also learn at school..

Saving has taken more than just a few coins in the piggy bank for us.. they are more sure about shopping, looking at the price rates, the offers, calculate the difference, the profit and also decide whether a thing is needed or not..


Saving also means effective utilisation of energy and not wasting food, not wasting paper, not scribbling on every available notebook, being careful with their stationary..(my daughter is careful, while my son still runs the grinder --(the pencil sharperner:rotfl)


Children absorb and observe us...if we are frugal, sensible and are able to tell them why something is a luxury or not necessary convincingly our children are going to learn them easily..:thumbsup

 

Felt as if you are talking about my daughter at that age..she was always counting, i would just say let us appreciate that..not all kids are that way you know..it is not that they do not understand the value of money or appreciate it, but don't care much..

In our case, we went through severe financial issues when she was young, so it did impact her to think the way she started thinking and add to that a frugal mother..

That we need to understand the value of money, be frugal but also enjoy some of the things that we can afford to buy..a beautiful dress, a book, a artificial jewellery is all something you can enjoy only at this age..and when the need/wish to own it passes, you will resent it later..better enjoy it when you can...

this is what we started doing..and it has helped to a extent..yes she thinks twice but does pick that thing if she really wants it..

i am sure your son will do good...