How To Teach Your Kids Good Money Habits.

How To Teach Your Kids Good Money Habits. | Money,money,money! Teaching children to save from an early age should be applied by all parents. It is an important thing that the child must have. This is because these children need to learn to manage expenses so as not to become a spendthrift. 

Therefore, parents play an important role in encouraging children to save. There are many benefits that your children get if they learn to save from an early age.

 

Here are some ways to teach children to save to educate the little one:

1. Open a savings account

Many banks in Malaysia offer special Junior accounts for children. You need to take them to the bank and open an account in their name. The more they are excited, the more they are eager to save in the account. So, take the opportunity to explain to them how to increase their money little by little.

2. Buy a tube

It is better to buy 2 different tubes. One for paper money and the other for coins. It's even better if the fund is transparent because the more people can see the money, the more motivated they are to save. Before children are good at shopping, you have to teach them to save from now on. When children already know how to shop, it may be difficult to train them.

3. Teach them to spend according to their ability

Parents are encouraged to teach their children to shop according to their ability. The method may be different from others because I prefer to teach children to buy quality things. There are also items that I buy for cheap but I usually won't waste too much on them.

As a parent, we need to explain to the children why buying quality goods are better than cheap ones. This is because quality goods can be used for a long time, and we didn't need to buy them regularly. Hence, money can be saved a lot in a period of time. And of course, do teach them to take care of their things, and use it wisely.

4. Give a gift as a reward

Children will be happy when their efforts are appreciated. So, they're more eager to do something that their parents like. Therefore, you can give a gift or 'reward' to them when your child manages to save well. 

For example, you set to save as much as RM50 every month. If it works, you give them a gift like an extra RM10 for the child to buy something they like without messing up the savings. And my kids usually managed to do it but end up asking for games credit. 

5. Give them understanding

Always talk to your child, what is this much money for? You have to explain to never take their savings no matter how hard it is. You save for their future. It's been quite an argument, but eventually, they will understand, what's in the bank stay in the bank until they are 18. Saving from a young age is great from now on so it's easy when they're older.

But, if you want money now you have to earn it. I found that one of the easiest ways to give them an understanding of money and saving is by using games. Games are something that is really fond of my kids and one of the webs that are fun for kids learning finance is the Morgage Calculator.

In Morgage Calculator, I can expose my kids to so many ways to earn money like Stocks,NFT and of course, they can learn mathematics with fun. My kids enjoy playing games because it the variation of the games and the achievement they can have in a short period.

Fateh do enjoy LEGO City Adventures game where he can learn about property prices and be a tycoon. It's a good exposure for him to learn about the property world, and maybe it can inspire him to save for his own property someday. 

Saving is not only good for your children's future, but it can also help you financially. Saving is not forever but it is necessary when you are in trouble. 

So, teach your child to save from an early age. As the saying goes, don't be like a crab teaching its child to walk straight. Hopefully, this sharing is useful and can help you educate your children to save for the future.