What lessons would you give Kids about Saving and Spending Money?

Money is one of the best blessings we have to take good care, or else it will become a curse to our lives.  Teaching our children while they are still young about the proper way of handling their finances, that is on spending and savings will ensure them of a financially stable future.  Thus a happy and contented life can start from simple lessons that we can teach our children.

Obviously, teaching kids with money entails a lot of patience and fragility.  As parents it’s your primary job to raise responsible and smart kids when it comes to budgeting.  They will have a better future depending on how you teach them with the practicalities of life, most especially on money matters.  In general, these are some of the most effective and fundamental principles you can consider in teaching your kids about money matter most especially on saving and spending.

Here then are simple yet effective tips on how to awaken in our children the proper and responsible way of managing their money even if they are still kids.

• Educate yourself– You can only give whatever you have.  This is a timeless principle.  If you yourself do not know the ways and manners of savings and spending, you will never become an effective teacher or mentor to your kid in terms of money matters.  Learn the ways on how to save well, budgeting, savings, investing, decreasing debt, buying only the necessary things and tightening your belt, meaning to say saving for emergency.
• Set them a good example yourself– Kids learn more by way of examples or witnessing.  If you teach them one thing and do another, then they will certainly be confused and would never learn what you wish them to learn.  Basically, our kids look up to us in everything we say and do.  If our words match our actions then that would become a very effective means to teach them great lessons in life most especially when it comes to money matter.
• Teach your kids one habit at a time–Our kids are not robots.  They pass from one stage to the next.  We should be patient and gentle with them, meaning to say let us teach them only the things which their mind and maturity can afford or fathom.  Money matter is a lifetime process.  We need to be efficient and practical in teaching only what is asked by our kids’ stage in life.  Let’s not put more than enough pressure on them.
• Introduce your kids to money—while they are still young and started to know how to count, take this great chance and opportunity in teaching them about the different currency and denominations.  Teach them the use of money in terms of getting what we need in order to live a better and comfortable life.  Teach them too how to add and subtract in order for them to know the value of buying and saving.
• Give your kids an allowance—Let your kids handle their own money no matter how small it may be.  In this way they will learn the actual experience in managing their financial affairs.  If they need advice regarding the money they are handling be always ready to help and explain to them the lessons that they need in view of the situation.Letting them hold money will eventually make them responsible in view of saving and spending.
• Give and allow them to have the chance to earn money—whenever your children do something beyond you expecting them to do for instance you ask them to wash your car and yet he watered the garden after doing what you ask him to do, then by all means give him that opportunity to have money as “earning” for doing something extraordinary.  This will encourage him to find ways and means on how to earn and likewise learn the value of hard work and patience.
• Teach them about savings and spending—if your kid asks you to buy him something he badly wants, don’t just buy it away for nothing or to please him.  Instead take this opportunity to teach him the important value of savings in order for him to get whatever he wants.  Impress upon him that money is not an easy thing to earn or have.  Hence, he will realize the importance of saving for whatever he needs and for his future as well. Likewise tell him that though he has the capacity to buy anything he wants, remind him that he must only buy what is urgent, important and necessary.  Otherwise, he has to save his money for the rainy days.

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In conclusion, teaching our kids to manage or handle money is a very serious task that we must pay attention too. Otherwise they will one day suffer from various money problems and put the blame on us.