13 November 2011

Teaching them to Save

I personally believe that teaching kids to save or spend money at an early, has a big impact when they grow up. It is important to teach our kids the value that we want to them acquire regarding money at an early age.

We are not perfect parents but we do our part in teaching the Tatapilla to save money with some silver dollars and gold as well. We opened a bank account for him almost 2 years ago and we've been teaching him to fill his platybank. We go to the bank every month when we can to deposit the money. He is a spender with things that he likes but at the same time, get joys in putting his money aside.

Parents are the key

As with almost every other area of childhood development, parents are the most significant influencers of their offspring's future financial behaviour.

Research from the Norton School of Family and Consumer Sciences at the University of Arizona has found that invariably kids inherit their financial sense from mum and dad. The study discovered parents who intentionally taught their children about financial management exerted a greater influence on a child's financial knowledge than lessons learned in school and the workplace combined. Davies agrees and says she would like to see parents flash cash rather than cards.

"Kids will learn more from actually seeing a cash transaction take place," she says. "Before going shopping, take out some cash and explain to the kids that this is as much as you will be spending. Then let them see you hand over the cash and receive your change.

"For older kids, at the start of school holidays, for example, let them earn some cash to pay for things they want to do and then let them be responsible for making choices on how they plan to spend their money. They will learn they can't do everything."

From bodyandsoul.com.au


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