Fun Ways To Encourage Your Children To Save
The importance of money management is something that cannot be overlooked, particularly as you make the transition from young adult to an adult with your own home and bills to pay. But when is best to start teaching your kids this all-important lesson? In the article, we are looking into some of the fun ways that you can begin to teach your children about the value of money.
One of the biggest lessons that you can teach your children is to stick to the budgets that they have set themselves. This is a valuable lesson as it is estimated that between ten to twelve million people applied for a payday loan for an unexpected financial emergency last year alone. By using play money, you can show the importance of budgeting and deciding the difference between a need and a want when it comes to purchasing items. By using fake money will help to showcase the importance of finance and teach them about owing money to others. This can then be escalated to learning about debt and interest rates as the child begins to grow.
A Money Box
One of the main ways that you can begin to encourage your children to save is with a money box. These devices come in a wide range of makes some with characters and some with lock codes and allow your loved one to keep their money safe and begin to save. There are a number of money boxes available online ranging from £7 to as much as £30 or more depending on the make and model. This is the perfect gift idea for a child or even a teen to help them begin to save for items that they want.
This popular household game has sold over 275 million copies since 1935 and is the perfect way to teach your kids about investing as well as finance. This is ideal for children of all ages as the game teaches them about investing, borrowing from the bank and also additional taxes which is a great introduction into how many works and how you can gain more. The more that your family sits and plays this game, the more your child will learn without even realising and most importantly having fun.
Create A Competitive Edge
If you are a family with multiple children all around the same age, then a bit of healthy competition is the perfect way to teach your children about money. Many young children like to spend the money as soon as they have it, however, this could encourage them to save. By rewarding the child that saves the most with a lump sum of your choice this can encourage your children to save from a young age. This comes as recent studies have shown that the average pocket money for a child in the UK comes to between £5.75 and £6.50 per week which is significantly higher than in previous years.
Money Management Apps
The final way for you to encourage your children to save is through a money-saving app. These popular applications can be found in the app store on both IOS and Android devices and can be linked directly to your bank account. This is great for teenagers and young adults as a large amount of time is spent on their phones. By using one of these apps it will promote them to keep track of their spending whilst on the go ensuring that they do not become overdrawn. Some of these applications such as Mint, Chip and Squirrel have different interfaces that allow you to view your spending either by category or making this perfect for a young adult using their bank account for the first time.
Money management is an important skill to carry through into your adult life and is something that should be taught from as young as possible. Which technique will you choose to teach your children?