As early as now, saving up will be beneficial not just for you but for your kids too.
Here are some tips on how to Teach Kids About Money:
1. Use money as a means to learn subtraction and addition. As soon as children learn how to count, introduce them to money but not in the sense of making them love it, just making them aware of it. Make use of paper money in teaching them subtraction and addition. This way, they will find it easy adding up the prices of things they buy in a store.
2. Tell the children the values of money. This includes how to save, how to make it grow, and most of all, how to spend.
3. Introduce children to the importance of saving versus spending. Give them piggy banks where they can put a coin or two from their daily allowance. By the end of the month, allow them to use 2 or 3 coins as a reward, just a bit from all the money they saved.
4. Be an example. When spending for groceries, make sure that you buy what you need not what you want. Making kids realize the importance of a need and a want will be a big step for them to prioritize on what to spend on.
5. Say no and mean it. Kids are often pointing this and that, wanting a toy, a candy and whatnots. Learn to say “no, you can’t have it.” Explain why…it’s like reminding them of the need versus want again and again. If they are insistent, tell them to save up for it and buy it by the end of the month….when they are allowed to spend.
6. Take kids to your trip to the bank and make them observe, talk to the teller and let them know the importance of having a savings account. Allow them to open their own account and actually withdraw from it and spend from it too. Not having to spend something might discourage them to save at all.
7. Reward them with another coin or two if they were able to save more than spend by the end of the month. 🙂