Tips to teach kids about savings and investements
Being a finance management student I always emphasis on saving and investment for th
e future. Every body should learn how to save and invest money in a profitable way. I am learning it now but I think I would have learned it in my childhood. Now I am a strong believer that every child should know about saving and every parent should teach saving techniques to their child. If children will know the benefits of saving then they will start it in their early ages, which will be a great help in the future time. In my opinion the preteen years are a golden time to teach kids about saving for the future. They already know the value of money, having learned basic money concepts in school.
e future. Every body should learn how to save and invest money in a profitable way. I am learning it now but I think I would have learned it in my childhood. Now I am a strong believer that every child should know about saving and every parent should teach saving techniques to their child. If children will know the benefits of saving then they will start it in their early ages, which will be a great help in the future time. In my opinion the preteen years are a golden time to teach kids about saving for the future. They already know the value of money, having learned basic money concepts in school.Following are some tips on how to teach kids about savings and investments –
- Explain to them that there are three things they can do with money:
a. Spend
b. Let it be in their wallets
c. Save and let it grow.
Now tell them that - It's good to spend for one's needs, but if all the money is spent, there will be none left for tomorrow. If money is kept in their wallets, it will be stagnant. But if money is saved and invested, it will grow to a bigger amount, which is good for their future. - Set the goal, Widen their vision by talking about what they want for the future. Would they like to own a car someday? Would they like to buy a big house with a garage and a doghouse for their pet? Setting goals this early, no matter how simple they may be, will help the kids aim for the future.
- After setting goals, tell how to attain them. Tell them - They need to save regularly and invest their money so it will earn more. These savings should not be touched anytime they want to buy a toy. Instead, these savings should be kept for their future goals.
- Children learn best by example, so use examples to teach them like bank
deposits, mutual funds, and other saving schemes. - Agree them to save a reasonable amount in Festivals, Birthdays, and in many other occasions.
The steps taken by child and parents now will bear fruit in the future. If child will be financially secure then the option will be always open for the growth and prosperity.
Comments
A must done process in every home
thanks
Thanks for these tips. They are very helpful.
We should discusse about their future goals and how to spend their money. When we decide to discuss this with them, maybe, we should just balance it by saying that life is not all about acquiring materials things, per se, but that they can make their life easier and more meaningful if they know how to use their resources wisely.
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You have written a nice blog. I concur to your viewpoint that parent must tell children the benefits of saving. By doing so they will understand the importance of money and will spent it wisely.
Regards
Shravan Gupta
Regards,
Shoaib Qureshi
http://soyasays.blogspot.com/
regards
Subodh Sahu
And we know that, "A penny saved is a penny earned."People should change their mindset and start teaching their kids "saving money".
Thanks for sharing the useful and impressive article. Making the points and then sharing what you want to say is the nice way to represent the article. Thanks again for sharing.
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Thanks again
Gop
Please mail me at surendrapratapmourya@gmail.com
Thank you very much.
Gop