How to teach your kids the power of saving, the value of investing?
Every year in April, 1 day is designated as Teach Your Children to Save Day. A day that is about enlisting parents to help their children earn money at an early age. According to the National Council for Credit Counselling Survey, only 55% of adults give themselves an A or B for 2019. Whenever they grade their knowledge of personal finance. Which makes financial literacy even more important for the next generation. Saving money is a habit that can take time to create and even a few human remains to be mastered. Consider this. About 3 or 28 percent of the 10 Americans have no separate savings to cover emergency expenses, according to the Banquet. With this in mind, here are some things you can do to get your children and maybe yourself on the band Began to protect themselves. Let’s discuss the teach your kids the power of saving and value of investing.
Best tips to teach your kids the power of saving and investing
Set a savings goal.
Being asked to save a child without explaining why it might seem pointless? Helping children define goals until savings can be a better way to motivate them. If he knows what it is? If you want to save, then help in cutting your goals. For example, if they want to buy a $ 50 video game and get a $ 10 allowance every week, then help them figure out how long it will take to reach that desired goal based on their savings ideas?
Better than earlier.
The benefits of teaching your children about money quickly are both immediate and long-term. In the short term, they can develop strong saving habits. One can learn to shop smart, begin to understand the true meaning of investing and maybe even learn that he cannot immediately get everything he wants. In the long term, you can help them avoid debt accumulation. And do not give pocket money in cash in the future and by teaching the value of savings, you can help them make financial security plans. As you think about how and when to raise your children, consider using their natural curiosity to make them visible.
Provide to save space.
Once your child has a saving target in mind, they will need a place to hide their cash. For young children, this can be a piggy bank but if they are a little older then they want to set up and open a bank account in the bank. This way you can see how their savings are increasing and how much progress they are making towards the goal.
Start with savings to teach your kids the power of saving
Before children can invest any money they first need to save it. For young children, parents either deposit one year of pocket money in one go or do every month. You will not be able to save only and get the right to invest. You have to deposit money to invest. To teach the concept of investment, parents can establish a money jar as their investment jar at home. Parents can use that jar to describe profit and loss as you will see in the stock market. If they have a good behavior day then you can make some extra loose changes.
Openly discuss about money with your children.
Time and again we hear the same thing. It is never too early to start discussing money with your children. Take this argument a step further and resolve to discuss openly about money with your children. In other words, let the kid money withdraw wisely and review as time passes. And feel free to discuss sensitive financial matters in the presence of your children. Such as salary negotiations and the status of your retirement accounts. It may seem strange to young children to talk about money all-around at first but there is no good reason to get them out of the room. So that grown-up can be discussed openly.
Younger children may understand everything you have discussed but it is okay. Do not understand all the words of the stories you read with them. This cannot stop you because you believe that they will lift more with repetition and age.
Indian Govt schemes for women children
One of the best schemes is Sukanya Samriddhi Yojana, This falls under the Beti Bachao Beti Padhao scheme, the Sukanya Samriddhi Yojana
operated by the government works on savings schemes for girl children. You can create an
account at any Indian Post office or a branch of an authorized commercial bank.
However, the account can be created anytime between the birth of the girl child and till
the age of 10 by a parent or guardian.
Read more about Indian Govt schemes for women
Lead by example.
If you like, then practice what you preach.
You are the most important and important role model for your children. By showing the financial knowledge through which you are seeing your children, you show them that it is possible to live through you. Children are understandable and they often receive signs even when you do not explicitly call them out. But your message will be clear and last for a long time with some good-natured repetition.
So when you want to give money management concepts to your child, then why and how are you doing this? And wherever you go, see the moments that follow. Earthly activities like shopping activities are ripe for reinforcement. It takes just seconds for your child to explain why you opted for the cheaper generic option over your functionally equivalent name-brand option. What to pay the premium for a fancy table?