Encouraging Your Children To Save

The savings in a child can become a good habit, and there is much that parents can do to promote it. Actually today many of our young people know the habit of saving. That is why our nations are experiencing a “crisis of financial illiteracy” where it is necessary that parents can advise and educate children about the importance of saving early and often.

The Savings Habit Starts Early

For example, if an adolescent is 13 and is about to spend $ 75 for a late model sports shoes, it would be best to think that with his body in full swing, here six eight months so beautiful those shoes will possibly be small and will lose all its value. Rather than spend that $ 75 why not invest? That same teenager surprised to know that if you have 13 years, your $ 75 will become four thousand at the time of retirement.

Only one in two Children think about Saving

Although our young school and college age know it is important to save money, only one in two does and many are forming from and unhealthy financial habits. A survey of one thousand students between the ages of 16 and 22 years conducted and found that only 49 percent of students saved some money by receiving an allowance or payment of salary.

How to Encourage them to Save

Once your children have basic concepts about money, you strike for them a savings account and teach them how interest makes your money grow. Encourage them to save a little money every receiving either birthday money, countertops, tasks or jobs. If your financial situation allows, consider pay them an amount in proportion to their savings, for example, 25 or 50 cents for every dollar you save. If your kids are a little older, you can teach them to invest in bonds, stocks, mutual funds or accounts designed for children. Besides countertops, children and young people can save money by doing jobs for neighbors and friends.

Better to make Small Mistakes than Large

The main lesson that your children will remember is to learn to manage their own money and make their own mistakes. It is better to commit these mistakes today with minimal amounts of money for that tomorrow can avoid more costly problems as adults.

As a parent it is important to take the time to teach our children the value of saving and investing money, because it is the kind of skill that will benefit them for the rest of their lives. And remember: you must model the behavior you want them to learn saving, investing and acting as a wise consumer.