Little Savers, Big Dreams: 5 Ways to Nurturing Financial Responsibility in Your Child

1. Build a habit of saving

The best way to teach a child is through games. Lessons shared while playing stay with them for a long time. Gift your child an ATM Piggy Bank and encourage them to save any gift received in cash. Let them enjoy the process of savings by using a dummy card and depositing cash. Occasionally, make them count the balance in their ATM Piggy bank and appreciate them for saving a big amount.

2. Set a goal

Children often demand gifts from their parents. You use this as an opportunity to encourage them to save- maybe for their next toy, pizza party or anything they desire to have. Set a goal, e.g. you need one thousand rupees for this toy. Make them save and regularly make them count their savings. This exercise will teach them the value of money over time and let you inculcate savings habits.

3. Boost their savings

Encourage your child to reach the set goal faster. For instance, your child wants a new study table. Equate the goal with an amount and regularly offer an opportunity to earn extra money. This will help your child reach the goal faster than he/she thought, as well as letting you teach an important chapter of savings.

4. Practice what you preach

Your child always observes you and picks up your habits even before you realize it. Replicate the habit of saving when your child is around you. Regularly put saved coins in a big clear jar. Encourage them to ask questions about savings and share with them what you are saving for. Buy a small thing with the amount saved; this will help you teach them savings practically.

5. Be a good role model

Your child is impressionable. Displaying the habit of overindulging can inculcate in your child a casual approach toward money. For instance, make them learn about the implications of impulsive spending decisions. Involve them in the process of decision-making. Make them understand the difference between need and want.

Imparting financial lessons is crucial in your child’s formative years. Check out our special savings account designed for next-generation – Next Gen Savings Account.