Thursday, May 15, 2008

Ways to save

Let your children learn to save at the young age is a good idea. Teach them to save for what they want on their own will have a better long-lasting benefit for them.

However it can be a challenge for most modern parents with today’s pampered children. Patience and persistent coaching will pay off in the end.

1. Set goals
Let your children know what he is saving for, example for a new toy, new clothes, for a holiday etc. List down the goals, schedule on when and how to achieve them

2. Give allowances for chores
Let your children help in doing house chores and reward them with allowances. Giving them a chance to learn that earning money require hard work. Start them young as older children may resist helping around the house.

3. Make own piggy bank
Help your children making piggy banks, may it a colourful box or container. When they make their own piggy bank, there is a sense of “ownership” and encourage him further to fill up the piggy bank.

4. Small change from pocket
Most dads usually come home with many small change in their pockets and they don’t like to keep those coins around. So, let your children have them and keep in their piggy banks.

5. Explain long term savings
Bring your children to bank and show them how to deposit money into their accounts. Explain to him on how buying an insurance policy comes in handy when he is older or during emergency

6. Cut down on unnecessary purchases
Tell your children on saving the money for buying ice cream or new toy can be rewarding at the end of the day. You never know how much you have save then, for other important purchases

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