Children, as they grow up, have unending demands. One day, they like a new toy in the market, and the other, they want that trendy outfit. However, we, as parents, need to ensure that we create a balance between spending and saving. After all, the money we save today by rounding up their expenses will benefit them in the future.
It is like a game you play with your child, round up their expenses today, and save tomorrow. Here are a few ways to do this –
- Incorporate piggy banks as an essential in your child’s life: Teach your children to save the leftover money in a piggy bank whenever they purchase. This will put them in the habit of saving money that they will use when needed. This also ensures that your child understands that it is not always required to spend all the money that they have at one time. They need to know that they should only spend the amount duly required and save the rest later.
- Set a monthly budget after discussing with your child: Discuss the amount they will require every month with your child; instead of calling it ‘pocket money, make it the ‘monthly budget’ to give your child a feeling of responsibility. Make sure to make your child understand that they cannot go beyond the monthly budget, and every penny saved will be every penny earned.
- Keep ‘Saving Rewards’: Encourage saving through a reward system with your child. Let your child know that they will get a surprise gift from you if they save a good portion of money every month. The excitement of getting a surprise gift will motivate the child to spend wisely and save as much as they can. The higher the saving, the bigger the gift!
These three methods can be used to round up your child’s expenses to save for them. This will teach the kid the importance of saving and help them realise the value of money. It will ensure that the child chooses their spending intelligently and does not overspend at any point in time. The saving will also help them invest in something big that they genuinely need, for example, the latest play station or a newly launched makeup box. Buying something on their own out of their savings will give them a sense of achievement and entitlement!
