A plethora of digital tools and resources enable today’s parents to guide their kids’ financial future to help them become confident and responsible adults
Saving money is the most crucial end goal of teaching kids financial literacy and smart money management. At the end of the day, it all comes down to how much we are able to put away from employment income, allowances and investments. And while saving money may not be as much fun as spending it, there are a few ways that you can entice your kids now and help them grow into responsible and financially savvy adults. As a first step, ask your kids what they would like to save for and help them get there along the way.
- Revel in Rewards: The rewards to saving money are indeed limitless, and financial security is something that many adults strive for. However, kids may not be as keen to put money away as they do not have the commitments that adults do. The key is to make saving fun and to give us something to look forward to. Be encouraging and help them find a healthy distraction that does not involve spending money until they meet their target. Once at the finish line and with saving objectives, you can both celebrate. Consider taking them out to see a movie or exempt them from weekend chores as a reward, and they will always associate savings with enjoying quality time.
- Research and Compare Prices: The internet is one vast marketplace. With a few clicks of a button, you and your child can take advantage of deals, coupons and promos that can significantly help save money. The exact same item or experience can vary in price between vendors, so a few extra minutes of research can save shoppers a few (or lots) of dollars. What’s more, many vendors and retailers offer price match guarantee, so if your child has already made their purchase but found a better deal elsewhere, a price adjustment can be applied retroactively. Help them draft an email to customer service. That way, you can rest assured that they will never be afraid to ask for their rights as consumers.
- Master Digital Tools and Technology: Modern-day debit cards and platforms offer a plethora of options that fit all needs and preferences. Service providers recognize that not all customers are the same. Kids and Gen Z needs from using a financial transaction platform will naturally vary from those of a more mature age groups, so many applications and platforms offer highly customizable packages with learning resources, interactive content and budgeting tools. It is no wonder that kids who use those technologies and seek financial guidance are more likely to have more money stashed away.
- Understand Investments: Another way to help your kids save and accumulate more funds is by educating them on smart investment decisions. By investing their savings in the right companies, they can potentially watch their savings value increase dramatically, instead of the money just being stored away or kept in a bank account. Yes, investments might potentially make them rich, but make sure they’ve done their homework and understand the risks and benefits associated with investing.
Do your kids think that saving money is boring? We are sure that either one or all of the above steps will have them want to save more and more.