When it comes to learning about finances, there is no such thing as too young. As parents, it’s our responsibility to make sure our children grow up with the right sensibilities so they can enjoy comfortable lives as professionals in the future. While it’s any parents’ joy to be able to spoil their kids now and again, constantly giving in to children’s wants can develop the idea that money is something that just comes and goes. Especially in Malaysia where shopping malls and retail outlets abound, it’s hard to pull on the reins when kids find things in storefronts and windows. If you want to teach your kids to appreciate the value of money and start them out on saving, follow these 6 tips.
- Set a Good Example – Teaching your kids the value of money while you go out and buy extravagant unnecessary luxuries will stir up some confusion. Kids follow what their parents do, so be sure to set a good example by showing your children that you have your finances in check. Whenever possible, take them with you when you go shopping for groceries or necessities so they can take cues from you on how to choose just the right products and nothing in excess.
- Give Them Their Own Savings Account – Banks often offer savings accounts for kids to help parents with their efforts to teach the value of money. These are usually low-interest savings accounts that set kids up with the basics. Be sure to choose the best savings account in Malaysia and check the saving progress with your child on a regular basis so they learn how to monitor their own finances.
- Provide Earning Opportunities – When you work for your keep, you’re more likely to feel the value of your effort. And the same principle goes for children. Giving them opportunities to work for their savings will ultimately teach them that money doesn’t come without putting in effort. Provide a list of errands and chores they can do for a certain value and reward them when they accomplish everything based on previously set standards.
- Make It Fun – Kids will always be kids, and things are more interesting for them if they find it fun. Printing out colorful savings charts, providing a nice container where they can keep their weekly savings, and discussing finances with them in terms they can understand will make increase their interest in setting money aside.
- Delay Gratification – Children often believe that they can get whatever they want the moment they see it because parents are always quick to say yes to their wants. Instead of buying things for your children the moment they ask, consider telling them to save for it. For instance, if they want to buy a toy that costs 200 ringgit and they get a weekly allowance of 100 ringgit, they can set aside 20 every week to buy the toy in 10 weeks. If they want to get it sooner, they’ll have to save more. This will make them more ambitious when it comes to setting money aside and will make the purchase just that much sweeter.
- Offer Rewards – Just like the other finance tools you use, you can adapt a rewards scheme to motivate your children to reach savings goals. For example, if they reach a certain value in their savings account, you can offer to take them out for dinner to their favorite restaurant. You can also offer to buy them a special little token to make them feel the fruit of their effort.
Ultimately, teaching your kids to start saving at an early age will help them become more successful and financially secure individuals in the future. Be sure to follow these 6 tips to help your kids become smart savers and to teach them the true value of money.