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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.