Leverage your child’s inherent creativity to educate them about money conservation with these useful approaches that focus on teaching your child to understand financial choices.
1. Power of Visualization
Since kids are primarily visual learners, use a goal chart like an unfilled thermometer or a table that depicts their savings progress. For older ones, instruct them to make a ‘Wish List’ stating all the things they desire along with their respective costs. These glaring reminders will motivate them to save money instead of squandering it instantly.
2. The Fun Excursion
Children always adore an exciting excursion. Proclaim that you would take them to the bank and witness the sparkle in their eyes. Numerous banks provide a dual savings account that the parent and kid can jointly open. Encourage them to partake in the process of managing their money by making regular deposits, especially when they receive cash gifts on birthdays or festivals.
As an incentive for filling their coin jars, take them to your local TD Bank’s Penny Arcade. Let them exchange their coins for a deposit into their savings account. The dynamic coin counting machine might even yield a prize!
3. Economizing Pennies
Compare prices in various stores or online platforms to enable your child to identify an excellent deal. While shopping with your kids, start by screening the sales or clearance sections. Educate them that they might stumble upon a lucrative deal or a cheaper substitute for items on their wish list.
4. Let Them Foot the Bill
It’s easy to spend parents’ money! Guide them into developing a healthy rapport with money by asking them to pay for their desired items from their own pocket. It helps them understand the toil involved in amassing personal savings.
5. Offer them a “Role”
Familiarize them with the worth of effort by allocating a fair wage for household chores or random tasks. Explain to them how many work-hours are needed to acquire the items they covet, based on these rates.
6. The Strategy
Engage them in a board game specifically designed to enlighten children about money or invent your own game! To find a comprehensive list of recommended games, refer to this article from About.com. Feel free to visit the WOW! Zone game room by TD Bank for exciting digital games for your child.
7. Strike a Bargain
Strike an agreement with your child to match a fraction of their savings if they save regularly or attain a set target. The goal could be anything – a video game, their first car – whatever suits your family. You may alternatively opt to reward your child’s commendable saving habits differently. Some specialists suggest tangible rewards like an extended TV-watching time, delayed bedtime, or a night of sleepover!
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