4 Importance Of Having A Piggy Bank
4 Importance Of Having A Piggy Bank
The most crucial aspect to acquiring financial stability in the long run and accumulating wealth is through saving money. Teaching your child in the formative years regarding the importance of money and savings is crucial. Gift them piggy banks to keep their pocket money save in there.
It goes without saying that the importance of saving has often not been taught or not stressed enough in our formative years. So much so that most of us have grown up making bad financial decisions and learned our lesson the hard way.
Learning the value of money and ways to save it should be taught as early as possible to young ones. Teenage is often termed as the most problematic phase of growing up. It’s a period of confused young brains trying to make a place in society- blending and fitting in with their peers.
If you are a parent, here are a few ways to better groom your children in managing their money problems and becoming financially literate.
A good way to keep your teenager in line is to gift them a piggy bank. Not only does that inculcate a good savings habit, but also builds a sense of responsibility and discipline in the child. It is a great way to save money in an easy and fun way.
There is a wide variety of piggy banks available in the market that make for a fun, unique gift for young adults. They also symbolize good luck and fortune in some countries like Germany and the Netherlands. Encourage your kids to save up their money in these cute little piggies for safekeeping.
These will make for the first bank accounts that your children open before they get to have a real one. It will also help in organizing loose change that often gets lost in our pockets or backpacks. In addition to these benefits, it will also help them to learn about ownership since it will be ‘their own money.
Allocate a weekly allowance to each of your children. Let your kids know that their goal is to fill up the piggy bank with as much money as they can until there is no room left. Inform them that they get a reward each time their little bank gets full. Emphasize the fact that they have to save up for their favorite new toy or gadget if they want it that bad.
Please remember that young children often tend to set short-term goals when it comes to money rather than long-term ones. At this age, the aim is to help them build a savings habit only. Appreciate them for their little saving achievements that teach delayed gratification.
Communicate the importance of money and savings with your children on a regular periodic basis. Research shows that kids tend to forget money lessons as early as five months since it is a difficult concept for them. Reinforced financial lessons will help build a stronger money value in your child that is based on hard work and responsibility.
Parents are hesitant to discuss money affairs with kids to protect them. Children are bound to learn how to spend money one way or the other. It can either be through bad decisions or by observing others.
Parents should teach their children how to spend their money responsibly on a day-to-day basis. For instance, this could be spending their weekly allowance over seven days instead of using it up within the first two days.
Once your children get in the habit of saving up in their piggy banks, open up a real savings account in the bank. This will give them the sense of ownership and independence that every child demands these days.
Moreover, it will help them to understand that their money will grow over time if left untouched. This will serve as the first lesson in learning how to make investments and earn interest over money.
A simple gift of an adorable piggy bank can lead to great life lessons such as saving money, setting goals and incentives, responsible spending behavior and making investments. Teenage is a delicate period that requires attention, love, and motivation. Encouraging your child in the smallest of ways may lead to an incredibly empowered individual capable of making complex life decisions.
Money can be saved in various ways if planned intelligently. Using bank accounts, making investments, reducing energy consumption costs, or cutting down on your monthly grocery budget. One way this can be achieved is through using amazing discount deals through DealMeCoupon.
The post 4 Importance Of Having A Piggy Bank first appeared on Tekrati and is written by eebamak20