“Save money and money will save you!” This single sentence describes the importance of saving money in a significant manner. Saving money is a beneficial habit that helps us for lifetime. It provides financial security and ensure a prosperous future.
Teaching money-saving habit to kids at a younger age helps them grow into smart and intelligent adults.
Meaning of Saving Money: Keeping aside a small portion of money from the regular income after the money being spent on essential expenditures is known as savings or the saved money.
The saved money helps us take well planned and beneficial financial decisions both in present as well as future.
We give pocket-money to our kids and sometimes they receive it in the form of cash as a token of love from their loved ones. We should make our kids learn to save money.
Importance of Saving Money for Kids
Let us now check out how money-saving habits in kids can help them.
Learn the value of Money
“A penny saved is a penny earned”. Let your children learn and understand the value of money. Your kids slowly get to learn that saved money is like earning money, when they start having their own savings. Also, they will learn with time that having money is a valuable asset. They will also gradually understand that money is earned with hardships so one should save it!
Learn to avoid wasteful expenditure
Kinds automatically learn to avoid wasteful expenses when they start saving money at their own. In the beginning, they might wish to spend money buying small items like candies, chips, etc. However, you should encourage them to save it for buying something important. Once they accumulate a small amount, let them buy something useful and permanent like pencil-box, colors, etc. This way, the money-saving habit teaches kids to control unnecessary expenses and buy something useful and important.
Learn to prioritize goals
When your kids start saving money, discuss what they want to buy in the future. Let them make a small list of five items they wish to purchase. Now ask them to prioritize those items. Let them save money accordingly. Thus, money-saving habit also makes them learn how to prioritize goals.
Grows into smart and wise adults
Early money-saving habits help kids grow into smart & wise adults. They get to learn the concept of ‘less is more someday’. Hence, encourage them and make them learn how and why save money, at an early age. Surprisingly, kids can start learning this concept as early at an age of 3!
Learn about financial skills and calculations
Kids get to learn and know how financial goals are set and how those goals can be attained, by saving money at a young age. Money saving habit also develops faster calculating skills in kids. They also get an idea of how the banking system works.
Conclusion –It can be concluded lucidly that kids enjoy many benefit when they get to learn and value the concept of saving money. The finance lessons, which they learn at this age, help them forever! So encourage your kids for saving money!