Money Savings Tips to Teach Kids
Teach Your Child to Manage Their Own Money
Setting up bank accounts helps with this in a more ordered way than just getting them to save money in their piggy banks. It is also a more realistic way for them to understand how money management works.
A bank account allows them to learn where money comes from. How many of our kids have said to us “Just go get it from the ATM!”. Having a bank account with a bank card is the perfect way for them to realise that money doesn’t just come out of the ATM machine. They also learn that money is not infinite and that if they spend it all, there is no more until they get more.
Budgeting. Before my kids had bank accounts, they would ask for random things without thinking about it. Now when we tell them they have their own money and can buy whatever they want, suddenly the Gloop is less important.
The costs involved with managing an account. Even though charges on kid’s accounts are often very low, there are often fees associated with the account. This can teach them about interest rates and how it affects the money they have.
As they get older, they can compare interest rates and bank charges. They can then make decisions based on their findings and depending on what they are trying to do with their money.
Our Children should learn the art of saving from a young age. The stats about the saving habits of South Africa are shocking, we do not save for rainy days! We are encouraging the kids to save as much as they can from now on and make sure that when they do spend their money, it is on something they really want.
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