Financial education is a pending subject and that perhaps should be taught in educational centers. The problem of not teaching some essential concepts related to finance; It can lead to older people who cannot choose their monetary products well, or have little saving capacity. To avoid this, encouraging savings in children is a fundamental task that can be instilled very early. Join us to learn some tricks to make saving a reality.
5 tricks to encourage saving in children
Savings is understood as the ability of a person to set aside part of their income to reserve it for some future purpose. From buying a car to having a surplus for an unforeseen event. Therefore, if you help to understand this very basic concept and the importance of the value of assets, saving can be a simple task.
Instill the value of money
Children often receive gifts in the form of money. Either by a grandmother who gives them a few euros when she visits him or on a birthday. We must make them understand that money is an extremely important good ; Thanks to which you can buy other products, live or that helps us meet some objectives. From a very young age it is important that they learn to appreciate what things cost. The days of work that can mean buying an object or that the money is obtained with effort.
Piggy bank or opening a checking account?
The typical piggy bank is still valid, indeed, it is perhaps the most common form of savings, both in children and adults. However, it is not a bad idea for parents to open a checking account for their children. They will also learn what a bank is, what it is for and all its associated concepts when they are older: interest, commissions, their advantages ... For example, thanks to a bank account they can see account movements or differentiate between an income and a spending.
Associate consumption with money
It is very common for children to perform actions that involve an expense. For example, leaving a light on or not turning off the tap while brushing your teeth. If we associate that every action entails an expense, we will be promoting savings. It is not only important to save light or water for environmental reasons; rather, this energy expenditure is an economic matter.
The importance of the culture of durability
Unfortunately, our society is oriented towards immediate consumption in which speed is the priority to obtain a good before its quality. If as adults we carry out responsible consumption in which the quality of goods prevails over other interests, we will be promoting the culture of savings. Who does not have a shirt that once cost a fortune but that after 20 years retains its texture?
Superfluous spending vs necessary spending
Children do not know the value of money, but it is the mission of adults to provide them with accurate information. There are expenses that can always wait, like a video game or some goodies. In front of others that are unavoidable like eating or dressing. And all this is born of an effort, that of working to earn money. Children often pick up on quickly what to expect and what not.
These 5 simple tips to encourage saving in children are a good way to start them in a financial education that seems very necessary. But that nevertheless is not a curricular matter in our schools.