When Children Save Money, They Learn Good Habits Young
When children save money, they start learning good habits regarding money at a young age. This helps them in a variety of ways. In general, it can help develop smarter attitudes surrounding money early on.
When children ask for things and it’s all just provided for them, they never get the opportunity to really appreciate the value of money or even where it comes from. They need to appreciate that work is needed to have money and, if one is careful with it, it will be there when it’s needed. This helps not just in creation of wealth later but also in avoidance of debt.
Kids are accustomed to getting cash from parents. They’re also accustomed to seeing adults just walk to an ATM and get cash from a machine. They don’t necessarily see the work as well as the planning that has to go into having funds available.
Giving children an allowance according to a regular schedule is one way of getting them used to not having money come in whenever they want it but, rather, at intervals. Be sure that they know what they have to do to earn that money. There are experts who feel it’s best that regular chores aren’t paid for, as children need to learn responsibility as well. There are probably special chores, however, that could be included so that both goals are accomplished.
You can talk over how a plan can be made to save money for a purchase that’s really wanted. You can also talk over how choosing to put money aside without spending it can lead to a greater rate of return which will greatly increase how much they can accumulate. This allows them to start seeing the advantages that come from saving and may decide to do this rather than spend.
On special days like birthdays, you may want to add to your children’s investment accounts or purchase some stocks for them. When they see the amount they have getting bigger and bigger, they’ll be more anxious to keep working on it themselves. As children save money, they begin learning habits that will help them be wealthy later if they’re continued.