Teach children to save money
If you want to teach your child to control their expenses, it is best done with your good example, because if you are able to put money aside, your child will find it easier to refuse something later in order to save money, e.g. for a toy of their dreams.
Pocket teaches your child to plan expenses
Start paying even a small but regular amount of money to your child. This will teach your child how to dispose of cash wisely.
Talk to your child about what he or she wants to buy with your money. This will help him to understand that sometimes it is worth giving up on buying something sweet, and then he can even go to the cinema.
Note: When a child spends too much money, don’t give him/her anything extra, because he/she will learn that profligacy doesn’t pay, because then he/she has to do without money for some time.
How to teach your child to save money?
It takes a lot of willpower from your child to put aside any amount of money received from the parent every month. That’s why you need to motivate your child accordingly.
So it’s worth fixing a bonus, so make an appointment with your child that if he or she puts aside, e.g. 2 USD every week, he or she will get a dollar for every 6 USD saved.
It will then be easier for the child to make sacrifices.
You can buy a moneybox or a small wallet for your child and let him/her put the saved money there (including the money he/she sometimes gets as a gift).
Note: You can also open a bank account for your child and you can deposit savings there.
If your child collects money, e.g. for a bicycle he or she wants, try to help him or her buy it. For example, if you promise your child that you will contribute a certain amount of money for their birthday, it is easier to make a decision, because the purchase you dream of will simply become more realistic for them.
Home budget and learning how to save money
It is often the case that even an older child is not aware of how much the family spends on various products and how high the household bills or their earnings are. That is why it is good to change this.
For example, it is a good idea to draw household bills (electricity, water, telephone, etc.) from the last month and ask the child to sum up everything. He or she will understand why you are constantly asking, for example, to shorten calls on the phone or save water.
You can also analyse the receipts from the shop with your child to see how much it costs to eat. Your child will then think twice before he or she starts pulling you for some bigger, unplanned expenses.