Teaching Children to Save Money

It is important to teach children different values while they are still young. One of the values that parents can and should impart to their children at an early age is the value of saving money.

With the proliferation of a variety of goods which are available to the multitude of stores and malls, it is very difficult – even for grown-ups – to stop oneself from spending the money in his or her pocket. Learning to save money is important, because one does not know what the future holds. A person who spends money like there is no tomorrow may end up needing money in the future, and find out that he or she has nothing to spend at all.

Here are some ways in order to encourage one’s child to save money as suggested by a financial advisor in Houston.

1. Give the child a piggy bank. This will encourage your child to put away loose change which he or she might otherwise spend on candy or junk food. The parent can also drop some coins inside the piggy bank to encourage the child. The heavier that the piggy bank gets, the more exciting saving becomes.
2. Open a bank account for your child. If your child has saved enough money to open a bank account, take him or her to the bank and open an account. A trip to the bank and meeting the bank personnel will be a very interesting and rewarding experience for a kid. Seeing one’s name printed on the passbook will also serve as a motivation to save more money.
3. Saving money should not be an end on itself. There should be a bigger goal for the child in order to sustain the habit. For instance, he can use the money that he saved to pay for the bike that he had been drooling over at the store. Or the money could be used to start his educational fund.
4. Lastly, the parents should set a good example. Aside from helping the child save by dropping your own loose change inside their piggy bank, the parents should set a good example. A child will be discouraged to save if he or she sees his or her parents spending on unimportant things. One should also avoid impulse buying because it reflects one’s propensity to put very little value on saving.

Financial awareness is very important, so it’s better to expose children to it as young as they are. For more financial tips and advice from an expert financial advisor in Houston, visit http://www.crisfinancial.com/Financial-Advisor-Houston.10.htm.