How do you educate your child on savings?

[sharonkhoo]

There is a thread on "Pocket money". Have a look there.

[Cokiemumster]

maybe an encouragement or advise that will motivate your child in saving? since they still could not appreciate how saving could benefit them since they still don’t have any obligations, I’ve read somewhere that parents could match the amount their child sets aside in a day. e.g., they’re able to save $10, tell them you could also give him $10 so his savings will then become $20.

[sharonkhoo]

Cokiemumster\" post_id=\"1979774\" time=\"1591437882\" user_id=\"184331:

maybe an encouragement or advise that will motivate your child in saving? since they still could not appreciate how saving could benefit them since they still don't have any obligations, I've read somewhere that parents could match the amount their child sets aside in a day. e.g., they're able to save $10, tell them you could also give him $10 so his savings will then become $20.

For younger kids, just helping them increase the amount isn't that useful, I feel. It can just make the child fixate on accumulating. Teach the child to budget - how much to spend on each category, and how much to save. Let him set a target for some way to spend part of the savings - towards a book, or a toy, a present for a sibling, etc. Then he can see that savings has a tangible reward. A 1-for-1 deal to help increase the amount would then make the \"reward\" for savings come more quickly, which is helpful for younger kids.

[zac's mum]

When my boy was a preschooler & crazy about Thomas the Train, I decided one day that I wouldn’t simply fork out the $15 or so for each die-cast model that he wanted to add to his collection.


I told him that from now onwards, I will give him $1 per day as allowance. If he wants to buy any additional train, he can save up to buy it. Two-fold benefit: he learns patience/how to delay his gratification. And he learns the satisfaction of saving up to buy sthg with “his own money”. Includes bringing the coins to the shop, choosing the toy (comparing prices etc) & giving the money to the cashier, like a “big boy”.

After a while, I noticed that the cravings & the tantrums for new toys simply diminished. The having to “work” to save up for the luxuries must have done sthg to change his attitude towards unnecessary spending.

He still saves up his daily allowance & CNY/birthday ang pow money dutifully. And he only spends it on worthwhile things, stuff that he has thought carefully about. These days it tends to be books, but also selective ones. Or donations to causes that he cares about.

[sharonkhoo]

There seem to be 2 parallel threads started by the same person. Can the mods merge them?

[JamieLoh85]

Thanks for the great tips! Children has to be encouraged to save money, we never know what the future holds for them.

[RoastChickenDance]

Financial Literacy Amazing Race

https://www.facebook.com/marineparadecluster/posts/4685865284817073

[Zeal mummy]

We would purposefully tell them how much everything cost. Bring them along when we do charity and volunteer work. Show them how others would live.

[mummyxoxo]

I played this financial planning game called Wonga Mania with my two dds before. It was very fun and educational, enjoyed by both young and old (like myself haha). You all may consider!