We’ve published many articles before on how to teach your kids to save money. And chances are you’re already putting all those good tips to good use with your little ones. While your kids may not have amassed a fortune, they may have a considerable amount of savings now. They’ve spent a long time accumulating cash here and there from gifts, chores and extra lunch money. But now’s the time that they may actually feel the desire to spend it. Here are some thrifty lessons for your kids to know before they start becoming big spenders.
Sign Them Up for a Banking Account
If your kids don’t have a banking account yet, now’s the time to get one. Everything is virtual now and many banks have already made their services available online. After all, what is a bank account if not a virtual piggy bank? Besides everything is high-tech these days and some kids are already owning phones from as young as 5 or 6 years old. So, a good way to keep your kids accountable for their spending is to sign them up for an official bank account. If you’re still doing things the old-fashioned way, a piggy bank is, of course, the only way to go. However, having everything go virtual is much easier especially when it comes to helping them track their spending. Which brings us to the next point.
Help Them Track Their Spending
Kids may often have little regard for action and consequence. But money may actually be the exception in this case. Especially if they know that they can’t earn all their cash back as easily as they spend it. If your children have understood the notion of currency, it may not be difficult to teach them how to track their spending. A good way to do this is with money management apps. These can help your child be aware of just how much they’re spending in a certain period of time. Of course, this may be a bit different if your child is saving up for something big, like their own phone, or a laptop. Then they’ll likely burn all their savings for that one item. Which leads us to the next tip.
Help Them Decide on a Saving Goal
Your kids may have lunch money leftovers, but chances are they won’t be racking up the big bucks any time soon. However, they may be tempted to start buying small items for themselves once they start to see their savings grow a bit. This will throw them off their trajectory, and take them longer to reach their desired savings goal. Especially if they do have to make some necessary expenses throughout the month. So, help them take accountability for their savings. Always get them to check their money management app. Ask them how much they’ve saved. Give them monetary incentives if they save more. This is also a good time to teach another lesson about being thrifty with their spending.
Teach Them Needs vs Wants
The most dangerous part about spending is not knowing the difference between needs and wants—something that kids may not necessarily know much about. This means while your kids may have mastered the art of saving money, they may not necessarily know how to spend it wisely. Now, we are not saying you shouldn’t let them buy toys or anything like that. It’s their money and you shouldn’t necessarily forbid them from buying something—as long as it doesn’t bring them harm, of course. But show them why they may not need another teddy bear, or that expensive pair of shoes. This will discourage impulse spending and prevent your kids from becoming future shopaholics.
Take Them to Thrift Shops
There are hundreds of second-hand clothing outlets that sell cheap items under one Ringgit. Bundle, for instance, is a great place to take kids. Not only for the ridiculously affordable clothing items, but also because of the sheer number of options that are available. If you haven’t been to a Bundle store before, they literally have everything. Especially the big ones. Thrift stores teach your kids to be open to options and to always be aware of cheaper alternatives. It also discourages the prejudice of “if it’s new, it’s better” or that expensive brands are somehow more superior in quality. Here’s a secret, all those designer labels are still made in China, just like the second-hand clothing items that cost less than half the price of those branded items.
Spend Within Reason
Unless your kids have their own income enough to sustain themselves, you will still have to pay for some of their things, like food and the occasional new outfit. Even so, it’s important to play it by ear. If your kids have a bigger goal in mind, then it’s okay to indulge them in small non-essential things every now and then. But if they’re just saving for the sake of saving, then let them buy their own little knick-knacks with their own money every now and again. Especially if they can afford it. But teaching your kids about being frugal isn’t just about teaching them to better manage their money. It teaches important lessons about responsibility, sacrifice, and discipline. There is no doubt that once your kids have mastered the art of mindful spending, they’ll be on their way to becoming successful, wealthy adults who will know exactly how to spend their hard-earned money wisely.
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