Kids normally have a very hard time saving their money, and teaching them to slow down on spending their weekly allowance may be a bit challenging to most parents. Usually, children would want to splurge their money as soon as the receive it. Parents need to encourage their kids to save. Sometimes, parents would even need to show their kids the benefits they get with saving in overstated ways. Teaching them the value of money and saving will help them when they are already on their own. It can even steer them away from becoming buried in debt and get charged with a credit card lawsuit.
Below are a few ways that you can try to teach your kids the benefits of savings.
Match whatever they save
This works very well with younger kids. For every cent they save, offer to match it. You can also match their savings with gifts such as toys, candy, special outings, treats and such. However, don't let your kids get used to this. As they grow older, slowly minimize the percentage of what you match to their savings.
Open a personal Savings Account for them
Help your child start up his own bank account by opening a bank account for him or her. Keep encouraging them to deposit some of what they save to a bank account. Many banks offer programs for kids. These programs give the kids prizes and points every time they deposit or if their savings reaches a certain amount.
Help them set their own goals
As young as kids are, they need to understand how to set goals and what they can do to reach these. Let's just say that they saw a toy in the mall that costs a bit of money. You can help them by giving them an empty bottle where they can see the progress of their savings. Tell them that they need to fill the bottle up in order to buy that toy they want.
Be a role model
Keep a piggy bank of your own next to your child's piggy bank. Explain to them why you are saving and how important it is for the future. Your children will soon mimic what you do and start dropping a few coins a day in their piggy bank.
Kids who start saving at an early age actually become better at taking care of their money when they grow up. Lay the right foundation for your kids and keep them out of a credit card lawsuit.