Learning To Save Money For Children

Children should first learn the function of money before learning to use and save money. Children can understand the simple concept of how money works when they are as young as third More often than not, a child sees a mother pays money and get something in return in a store.

This understanding can be enhanced by repeated incidents and role play at home. Try showing your child to spend some money to get something in return.

When a child can understand this simple concept, you can educate him / her about ways to spend money - which is to spend or save. It is time to instill correct values and behavior. You can educate a child about "How to Spend Wisely". More often than not, a child will do the same spending habits as a parent if they are taught from young.

Children may believe that there is money dispensing machine where their parents simply enter a few tracks and they can get as much money as they want!

Explain your child goes where the money comes from. Please tell them daddy and mother must work to earn a certain amount each month. This part of the funds needed to be shared throughout the household, and careful money management is necessary before we run out of money.

Some reasons to education, why a child should save:

1st For daily living (eg food and clothing)

2nd Healthcare

3rd Education

Educate your child that it is the priorities that come before toys and leisure.

Compared with how to save - you might want to start with a coin box or piggy bank at home. Occasionally offer smaller amounts for your child to fall in currency box. Finally, when the coin box is full, open a joint bank with your child.

To reward your child with good savings habit, you can get her balloon! This in turn would encourage her to continue to save money.