Teach your kids to save by starting small
Some people think saving small amounts of money is not worth it, so they don’t bother. But any savings is better than none, and those small amounts can grow into a sizable sum in the long term.
The long-term benefits of compounding and delayed gratification are important lessons to teach your children.
Here’s how to help your kids develop the habit of saving.
Start with the humble piggy bank
Putting coins in a piggy bank provides a tangible way for children to learn to save. Seeing and touching physical money can help kids grasp the concept of saving sooner.
You’ll probably need to explain the difference in the value of money to younger children so they understand that you can buy more with 50 cents than you can with 5 cents. At the same time, impress to them that even if they can’t save 50 cents, putting just 5 cents in the piggy bank is still worthwhile.
At certain intervals, such as every quarter, have them count the money in the piggy bank. Point out how much those 5-cent coins added to their savings.
Let your kids play banker
If your family has played the board game Monopoly, your kids probably understand how the banker controls most of the money in the game.
By opening a savings account or using a digital finance app, like FLX, your kids can assume the role of ‘banker’ and learn to manage their money in real life.
With FLX, you can transfer pocket money into your child’s FLX account. Your child can choose to save their money or make a purchase with their prepaid FLX card.
What’s great about the FLX app is that kids can set multiple savings goals and allocate a saving amount to each goal. They’ll be able to track their savings, which could motivate them to spend less and save more to reach their goals faster.
Make your kids aware of discounts
Using coupons, vouchers, or other discounts is another smart way to micro-save. You can model this to your kids by choosing discounted products and showing them how much you saved compared to the more expensive option.
Your kids can follow your example by comparing prices and selecting quality, lower-priced items. The money they save can go towards their savings goals.
This practice also teaches kids to discern between price and value. They’ll learn that expensive products are not always of higher quality. There are plenty of lower-priced products that offer great value.
Encouraging your children to save even small amounts of their pocket money instils good money habits from a young age.
To help your kids learn to save at any age, you can join FLX. With FLX, kids can set multiple savings goals and transfer money to each goal. Seeing their savings grow could motivate them to save even more. Sign up for FLX here.
This is general advice. Read the PDSs & TMDs at www.flexischools.com.au/legal before deciding if FLX is right for you. The FLX Services & Flexischools are provided by InLoop Pty Ltd ABN 27 114 508 771 AFSL 471558 (trading as Flexischools). The FLX Prepaid Mastercard is issued by EML Payment Solutions Limited ABN 30 131 436 532 AFSL 404131 pursuant to license by Mastercard Asia/Pacific Pte. Ltd.