Understanding the value of money goes beyond mere financial security. It also means empowering your children with a sense of responsibility and fulfilment. In today's world, you must build savings habits in your kids from a young age. As a parent, you play a crucial role in shaping their financial habits, setting them on the path to a secure and prosperous future. Let us see how this can be achieved.
Tips to build saving habits for kids
1. Set a good example
Children develop their skills at home by observing their parents, including their approach to financial management. They will notice your saving and spending habits, even if they are young. So, create an encouraging atmosphere to build savings habits for your kids. Make them a part of financial discussions at home to generate interest and curiosity.
2. Encourage kids to earn
Instead of simply handing out pocket money, give your children opportunities to earn it through simple household chores. Receiving small amounts of money for performing tasks like cleaning their room, walking the dog, setting the table for dinner or washing dishes can help them understand the value of money. This approach teaches them that money is earned through effort, instilling a sense of responsibility and work ethic that will benefit them throughout their lives.
3. Turn learning into a fun experience
As soon as your children learn to count, teach them about money, its value, and how it is spent. Make this learning experience enjoyable by incorporating number and money-related games, such as Monopoly. This approach encourages them to ask questions and explore the concept of money further. Through these engaging activities, they can also start to grasp essential money management techniques.
4. Guide them to budget and save
A great way to teach your child to budget and save is to let them do it themselves. Whether your child receives pocket money or earns money from a task, you should encourage them to keep a portion of it aside. A piggy bank is a good option to save their money. In the future, if your child wants to buy a new toy, he or she can do so by paying from their savings. This experience will give them the satisfaction of planning for a goal and achieving it.
5. Teach them the concept of needs vs wants
Engage your children in hands-on activities, reinforcing the distinction between needs and wants. Create a visual aid, such as a poster or chart, where they can categorise different items accordingly. Encourage them to identify objects around the house or in a shopping mall and classify them as necessities or desires. This interactive approach transforms learning into a fun and memorable experience.
Conclusion
Now that you know a few tips to teach your child to save money, you should let them start this financial journey immediately. One great way to kick-start this is by opening a Savings Account for your little one. With Axis Bank Future Stars Savings Account, you will get attractive interest rates on the Savings Account and many additional benefits, such as a Visa Platinum Debit Card and insurance cover for your child. By taking this proactive step, you sow the seeds of financial responsibility early on and pave the way for a brighter financial future for your child.
Also Read: Top 9 benefits of having a Savings Account
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision
