5 Tips to Form Saving Habits in Children

Good habits are one of the things we must have in life. And to build these habits does take time and a process that is not short.

Today, we still often find people who are not used to saving. Not because they can't afford it, but because in fact they have enough steady income. So what makes them have no savings?

The answer is easy: they are not used to saving. It could be because of the influence of the environment and lifestyle, the money they get every month just runs out, or even less. They should have enough money for their daily needs as well as saving.

One of the factors that make them unaccustomed to saving is: they do not understand finance. Perhaps, in their childhood, they were not accustomed to saving, which unfortunately carried away their extravagant habits until they grew up.

We as parents certainly do not want our children to experience the same thing. Therefore, financial education for children is very important. Moreover, currently, schools do not teach their students how to manage money. Even if taught, usually basic things such as the importance of saving and other simple things.

Then how to teach financial management to children from an early age? Let's see together the following tips!

1. Understand the Difference Between Needs and Wants

Before teaching children to save, parents should teach their children about the meaning of needs and wants.

Understand to them which are needs and which are mere desires. Also, understand that needs must take precedence over wants.

It can be started with simple things, such as: giving an understanding that eating is a necessity, but snacking is a desire. Buying clothes is a necessity, and buying toys is a desire. And so on until the children understand what to buy and what not.

2. Teach Children to Set Financial Goals

Teaching children about financial goals has been practiced for a long time. In the past, if we wanted to buy an expensive item, we were told to save first, or have to achieve certain achievements such as class rankings, good grades, and so on.

This can also be applied to our children. Tell them that if they want something, they have to work on their own by saving.

Help them by making simple calculations. For example, a child wants to buy a toy for 100 thousand rupiahs. Try asking them to save our money of 5 thousand rupiah per day, for 20 days.

If they wanted to buy it from the start, give them extra pocket money for them to save. Also understand that if they are willing to set aside some of their pocket money every day, their goals will be achieved more quickly.

That way, they will learn how to save and be patient not to use the money until the money is collected.

3. Give Examples

The easiest way to teach children is by example. In this case, parents are asked to be able to give examples to their children on how to save well.

For example: putting a child's and parents' piggy bank in the same place. That way, children will see that their parents are also consistent in saving with them.

Also, give them an understanding that saving is fun and has many benefits. For example, by telling a story: "Alhamdulillah, now we can have a car as well from your savings!"

4. Give them a chance to manage their own money

If the children have grown up, we can educate them to learn to manage their finances. This can be applied in many ways, for example: by giving children pocket money per week.

By giving pocket money once a week, they will be forced to be very clever in managing their money so that it doesn't run out prematurely.

Parents should also be firm, and don't give out extra money if they run out of money before the weekend.

Of course, this should also be discussed with the child: what makes the money run out quickly? Then after that give input on how they should manage their own pocket money

5. Open a Special Account For Them

If they have started big, and their savings have also started a lot, try creating a special bank account for them.

By having a bank account, they will learn about how to properly manage their money, and they can find out exactly how much savings they have.

Having their account can also usually make them more enthusiastic about saving.

Those are 5 tips to teach children to save and manage their finances from an early age. The hope is that in this way their saving habits will be formed, and in the future, they will have no difficulty managing their finances.

Good luck!

 

Author: Ghifary