As your child gets older, you can still set an example of saving and spending wisely by matching your child’s saving contributions. It’s important that your child understands the importance of managing their finances properly as this may help them from getting into debt in the future which could result in them having to seek IVA Help & Advice.
Saving for the future
As your youngster grows up, these are just a few ideas to teach him or her about saving more effectively:-
- Help your children learn to prioritise – Have older children write out a wish list about what to spend their money on and prioritise that list. Invite your child to think about short-term, as well as long-term goals. Have your child share out an amount of their money to each and every goal. This is the foundation of a financial plan and this sort of thinking will be wonderful for your child’s wellbeing in the long run.
- Play Games – There are so many games available which have been designed to teach financial ideas to children, for example, Monopoly, which can teach money management skills in addition to the importance of forward planning. As well as using family game nights with helping to teach kids the value of money, there are also lots of online games as well.
- Open a savings account – If your child is old enough to recognise the concept of financial interest, you can find savings accounts that can earn them interest. Many banks will help your child to open a high yield account and assist in explaining the importance of interest.
- Look for deals with your child – saving money is made easier when looking for deals on buys. Together, compare prices for items on different websites and make this a fun activity.
- Let mistakes happen – from time to time the best lessons come from a bad decision, in particular when your child is young and the monetary loss will not be so important. Mistakes will help them to wish that they had thought through their buys before they spend their money.
Despite the fact that you may not want to talk about your earnings in front of your children, you possibly will want to let them have the sense of hearing you discuss your financial arrangements, especially the ones that you are making for retirement. This might just be about having a number of conversations with your partner while your children are around. Along these lines, your children can appreciate that saving is a lifelong endeavor.
By teaching your child exactly how to save, it is a vital step in preparing them for future financial responsibility and a providing them with a secure future. You do have to be the example however and save for the future yourself with IVA Help & Advice. Whether we like it or not, for the most part, many of us take after our parent’s financial habits. So, you need to take positive action and show how you want your children to act in later life.
Disclosure: This is a collaborative post
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