7 Ways You Can Teach Your Kids How To Save Pocket Money - muvin

1. 7 WAYS YOU CAN TEACH YOUR KIDS HOW TO SAVE POCKET MONEY All of us, at some point in our lives, have wished to have learned about the importance of saving money from a young age, haven’t we? In fact, if our parents had this habit instilled in us and taught us about the importance of saving money, we would have been able to save quite a lot of money by now. Luckily for GenZ, financial literacy and understanding have become the most integral aspect of the overall growth of an individual, making it a need of the hour. Savings can not only shield us from facing a financial crunch at the time of adversities but can also help us be financially responsible. Getting financial education for kids from an early stage is a prerequisite and while keeping this in mind, parents can help kids inculcate these habits from a young age to help them gain greater financial literacy and become financially responsible. Here are 7 things you can do to teach your kids to help them save more money in the long run: Explain the difference between needs and wants The very first step is to discuss the difference between needs and wants with your kids to help them understand the value of money. You must explain that basics like food, basic clothing, shelter, healthcare, and education come under needs, whereas products like a smartphone, bicycle, gadgets or even movie tickets, etc. fall under the list of wants. Allow them to make their own money The value of money is often realized when it’s earned by oneself. Keeping this in mind, you can let your kids earn their own money. You could start by paying them for doing chores around the house and then urge them to further explore the essence of earning with the help of internships. By earning their own money, kids will slowly begin understanding the value of hard work, while learning how to earn, spend and save money wisely. Set saving goals and track expenditure The vague idea of saving money can be a difficult concept to understand. While you realize the value of saving money yourself once you’ve grown older (owing to healthcare bills, rent and much more), it can be difficult to make your child understand the value of the same. After all, they don’t need to worry about all of those expenses yet! However, to encourage them to save, you can begin by telling them to set a goal to keep them motivated to save money. For example, if they want to buy a video game for INR 3,000, you can help them break

2. down their goal in terms of how much they have to save every week to be able to buy the game. This will also enable them to track their expenditure and reach their goal faster. Act as your kids’ creditor Often, kids tend to get impatient while saving and want to be able to reach their goals a lot sooner. This can be a good opportunity to help your kids understand the concept of borrowing and lending by acting as their creditors. You can tell them that you can lend them money for their goal, but they will have to return some of it every month from their monthly allowance as an equated monthly installment. Offer incentives/interest on their savings You can keep your children encouraged to save more by giving them incentives. For example, for every figure they save, you could match up the amount with a certain percentage, allowing them to grasp the concept of incentives and interest that will help them in their later stages of life. Give them a place to save and store their money Saving money shouldn’t just be about stashing cash. While you can encourage using a piggy bank for the young ones, we recommend setting up a savings account for the older ones, allowing all of their savings to be readily available in a more accessible way. You can easily opt for youth neo banks like muvin which offer a digital savings account, digital wallets & contactless cards that can be opened from the convenience of your home. Leave room for errors Part of getting financial education for kids also means that you should be leaving room for their mistakes as it lets them learn from their own errors. It could be tempting to step in every time they make a mistake, however, you must know lessons learned by oneself will stay with them forever. That being said, one of the easiest ways to enable your kids financially is to register them for a youth neo bank like muvin which can let them experience easy-to-use, intuitive, gamified, and education-powered banking. Download the app now! Original Source - https://www.muvin.in/blog/2iuqwNRSHURbYvtkL4R39X