Learning how to be careful with money starts at home. After all, most children get their first income from their parents in the form of pocket money or a small allowance. This is a good starting point for teaching them the value of saving money and how to make things last. It can even be fun and a great way of spending time together. In this article, we show you How To Teach Your Children To Be Frugal.
How To Teach Your Children To Be Frugal.
Why it is important for children to save
In the Stanford Marshmallow experiment, a child was given the option of eating a marshmallow straight away or two marshmallows, if they waited for 15 minutes. Follow-up studies showed that the children who waited for two marshmallows were more successful in later life. Success criteria included educational level, healthy body weight and school results.
The principle behind frugality is the same. If your child learns how to save something for the future versus over spending money right away, then they are developing a mindset that will benefit them for the rest of their lives.
[content-egg module=Amazon template=grid]Set a goal and work towards it together.
If you give your child an allowance, teach them the skill of saving up for a specific item. It could be a video game or a phone, for example. Sit down together and work out how long it will take for them to save up for it based on their pocket money. Encourage them every step of the way, ask them for regular updates and reward them when they finally reach their goal. Whatever you do, do not cave in and buy it for them! That said, try to keep it as much fun as possible and focus on the goal.
Teach them how to remove ink stains from their clothes and make them last longer.
As clothes get cheaper to buy, it becomes easier than ever to discard clothes instead of maintaining them. If you have a child that drags you to a shopping centre every other weekend, encourage them to develop a mindful attitude towards their possessions. For example, you can teach them how to remove ink stains from clothes (a common problem for school clothing), sew on buttons and iron clothes. These small habits will help them to look after what they own instead of buying new clothes.
Making “Interest” interesting.
Teaching your child how to be financially literate is underrated, even though it is one of the most important life skills they can have. To get them started, set up a savings account with a lump sum. Explain to them how their money will grow through compound interest over time. You can get them to work out how much interest they will earn based on the amount they want to put in themselves. This practical maths lesson shows them the advantage of saving over spending money right away.
Being frugal isn’t about teaching your child to be selfish or not wanting to share. It is about teaching your child the longterm benefits of looking after what they have, developing willpower and being financially savvy. In an environment that entices all of us, especially teenagers, to consume and spend money all the time, frugality is a vital skill.
Hope you enjoyed reading this article on How To Teach Your Children To Be Frugal.
Please also read our earlier article How to Live a Frugal Life.
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Tags: frugality, How To Teach Your Children To Be Frugal, Make Money, personal finance, Savings
