It’s common knowledge that kids are expensive. Saving money with kids seems impossible, and teaching them how to save their own money feels like a losing game.
We’re here with a few money tips that can help. Read on to learn all about saving your money while you teach your kids to save as well.
Pay an Allowance
This might seem counterproductive to frugal parents, but if you want to teach your children to start saving money before they’re able to work on their own, you need to pay them an allowance.
This allowance doesn’t have to be “free.” You can choose age-appropriate chores for your child(ren) to do so they can earn their own money.
If you want an ultra-realistic experience, consider taking taxes out of your child’s allowance (though this isn’t necessary and many children will “get the point” without that extra step). If you choose to take taxes out, we recommend putting them aside into a savings account for your child so they’ll have a small amount of money when they move out on their own.
At first, children will spend their allowances on trivial inexpensive things, like candy. Once they realize that they’re unable to afford larger things after spending their money, they’ll learn to start saving and prioritizing. It takes several weeks of allowance to buy a videogame or expensive toy!
Break Down “Real Life” Costs
Start talking to your children about money as early as possible. They need to know the value of a dollar, and by walking them through what real things cost, they’ll start to understand the importance of saving.
Take them with you on grocery trips and have them help you find good prices. Do the math to explain why sometimes buying larger and more expensive products sometimes costs less per serving than the smaller and cheaper products.
Children are able to understand more than you give them credit for, and by talking to them about money, you’ll save them a lot of frustration in the future.
Start Investing Early
You should invest your money for yourself and your family as early as possible. Buy stocks and bonds, and even invest in cryptocurrency (you can use a Bitcoin ATM; check them out here) for your child as soon as they’re born. By the time they’re eighteen, those investments should be worth a lot more.
Investing, as long as you do it the right way, is better for your savings than a traditional savings account. It’s the best way to combat inflation so that your money maintains its value.
You can talk to your children about investing as well. Consider even using a fun game, like the Neopets stocks, to get them acquainted with the idea.
Saving Money With Kids Isn’t Easy
If you want to save more money, get your kids involved! Teach them the value of money, pay them an allowance, and start investing money for their future. You’ll raise savvy savers and put yourself on the track toward financial freedom.
Start saving money with kids today.
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