So much of our society today is based on commercialism and immediate gratification, giving kids very little incentive to want to put money away for a rainy day.
Yet many experts say the sooner a child learns the importance of saving money, the more successful they will be in meeting their financial commitments later in life, like buying a home, or car...or saving for college or starting a family or a business. Those who are able to meet those goals are the ones who experienced saving early on.
As parents, it's our responsibility to help our children get the things they want - by saving up. My son gets a weekly allowance every week for doing chores. Certainly, he would much rather spend his "paycheck" as soon as he gets it, but we've been urging him to put some of it in his bank. We all have wish lists, and his is full of expensive video games that mom and dad refuse to buy...so if Nicholas wants them, he has to save up for them. And that's what he has started to do.
Money experts and even child psychologists say there is nothing wrong with a child wanting material things, because it can serve as incentive for saving...and create a healthy realization that they can make their own dreams come true.
Here's a few other tips I've learned to help your youngster learn about the value of saving:
1. Make a wish list. If the child knows what he or she is saving for, they'll be more determined to do it.
2. Have a savings plan. For instance, help the child to decide how much of each allowance or paycheck to set aside, regardless of the goals.
3. Don't undermine your child's savings resolve by leaping in to buy the thing he's saving for--that will only teach them that they don't have to save to get what they really want.
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