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How Parents Can Influence Their Kids To Save

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Being frugal and my ability to save can be attributed to my parents. Since I was little, I can clearly remember how I used to save a few pesos and even centavos in an old baby powder bottle. My father would cut a little portion at the top where I can insert the money. He always told me to save up. That is why when I was given an allowance, I put it there first then use up the rest. When the baby powder is full, then I’ll use it to buy something. Their best gift to me was a porcelain piggy bank. Little by little I fill it up with whatever amount I could save up. I remember I cried hard when my parents would need to break it in order to buy food for the family since my father don’t have work for weeks already. But since then, it has been implemented in my system to save whatever I can. And thanks to my parents who taught me that.

I was never born rich. Everyday has been a struggle to my family especially when it comes to money. That is why my parents would instil to value it and save it. As such for parents out there, it would be great to start your kids early on how to help them with their money. Impart the financial basics in order to root responsibility and value for money. Here are tips to help you.

Talk

One of the things you could do would be to talk to them about money. Tell them how valuable that is and why it should not be wasted. Tell them where you get the money and how did you do it. A simple conversation with them can really make a big difference. From there, they can be able to understand how hard it is to earn it.

Goals

When you kid would be asking for a new gadget or perhaps a new dress, don’t buy it right away. Frame it as goal for them. Help them understand how much money they need and give it a timeframe. This will help them become motivated to save. Give them a piggy bank where they can be able to deposit the money. Or you can have them deposit in a bank and let them do the depositing. Make them understand why it is necessary to store it there.

Reward

Reward your kids every now and then if ever they would reach a certain amount. Encourage them to save a portion of their allowance every time they receive it. You may also match their saved money and add it up to their savings.

Take them to work

To better understand where you get your money, take your kids to work sometimes. Take them to a tour around your workplace. Let them understand how you were able to earn. This will help them understand that money cannot be pluck out of trees.

Don't fight about money

As much as possible, do not fight in front of your kids about money. They would think money as bad and could cause chaos in the family. Hence, when they have money on their own, they would squander it right away in order not to cause trouble.

Remember the earlier you train your kids the better. Make them financially responsible even when they are little. Don’t give in to their every whim. This will only tolerate their behaviour and they would be asking for more expensive items next and they could be very demanding. Implement tough love every now and then to let them understand about money. As a parent, you are responsible for shaping their financial intelligence. Help them become financially responsible and intelligent. They would be carrying that when they grow old. 





P.S. To those doing the 52 Week Money Challenge and 52 Week Money Challenge Version 2, it is Week 11 already! Did you deposit the next amount yet?

P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.