Long term saving is important for virtually every person throughout the country. Especially in difficult financial times like these, people are relying more and more on savings that they have accrued over previous years. To help ensure that your children are well-off financially for their futures, it's important to instill in them a desire to save money over the long-term. However, the instant gratification that comes from credit cards, online shopping and more can make it increasingly difficult to convince kids of the benefits of long-term saving. Read on for a few tips on how to do so.
1. Set Up a Practical Example
There's only so much that you can teach a child without having him experience it for himself. Tell your child about the benefits of saving over the long-term, and make use of it the next time that your child wants to purchase a big ticket item. If your child wants to buy something that is a little bit more expensive than he can afford, set up a system at home that provides him an incentive to save money. You can even set up a "bank account" for him, where he'll provide you with money that he hopes to save, and you'll give him interest payments on that money to help him save up for his purchase. This not only teaches your child the value of saving money, but provides an excellent introduction to the way that bank systems work as well.
2. Provide a Weekly Allowance
When your child develops to a point at which he can understand the concept of saving money, you may wish to begin providing him with a weekly allowance in exchange for chores that he does around the home or other tasks. This is another good way to offer him an incentive for saving as well; you may consider increasing his allowance the more that he manages to save, or you can even offer him alternatives or rewards for saving money as well. These would be akin to an interest payment at a bank account.
3. Do Not Reward With Money
One of the ways that many parents actually work against their attempts to teach their children about the importance of saving money is by rewarding them with monetary gifts. If you give your child a gift of money or purchase something for him that he has been considering saving up for, you show him through your example that certain things can be purchased without having to save up for them. Don't make your child wait unnecessarily for an item that he will have a difficult time saving up for, but show him that there are alternatives to spending your money quickly, and be careful not to spoil him or distort his thinking by purchasing him expensive gifts or giving him large amounts of money as a reward for good behavior, grades or something else.