The importance of learning how to save money at a very young age cannot be overemphasised. It is usually the earlier, the better. Teaching a child how to save is a process that is gradual and also continous. It is not uncommon to see a lot of kids misusing hard earned salaries of their parents. I will be talking about how my parents taught me to save.
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The first thing I learnt from my parents was planning. I learnt this from their example, they didn't really have to sit me down to teach me. I watched dad put money in envelopes. He had my name and that of my siblings written on each envelope. He also had envelopes for bills, and miscellaneous.
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Trying to imitate him, I got different envelopes. I had one for short term savings and another for miscellaneous. Most of the money I received was kept in the long term savings. Only the long term savings was kept in a tin container that was difficult to open.
Give rewards to your child for saving. I remember when my dad gave me money for saving up money. I was so surprised, "you are paying me to keep my money well lol." This even increased my zeal to save more. I wanted more rewards. Oliver asks for more.
The difference between wants and needs should be taught. This would help the child, when he/she grows up to have a scale of preference, were important things comes first.
Also important, is to teach the child to have a list of things he would want to buy. And teach him/her to arrange the items according to the term, long or short. My mum would ask me what I want and help me plan to buy it. In my long term list I had a console, I think it was called Family Con, then later a Sega.
Monopoly money | Image source
Playing games that involve money was also fun. I remember playing Monoply with my elder cousins while I was growing, having lots of fake money and feeling top of the world.
Bonu Tips
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