How to Instill Saving Habits in Teenagers
Teens spending more money than required, not knowing the value of money, etc., are some of the common concerns shared and faced by the parents of all teenagers. As parents, you have seen dark days. Hence, you realize how important it is to reduce expenditure and save money. On the other hand, teenagers think that money is something that is meant to be spent lavishly on anything that they desire.
True, money is meant for spending, but one also needs to learn saving money for rainy days. If teens are not taught this, then they will face a lot of problems in the near future. Here are some techniques that can be implemented and taught by parents to their children, in order to save money.
Money Management Skills
It’s important that teens are made to understand how to manage their money, because, not only will they require that money during an emergency, but it can also be used to sponsor their higher education or to purchase an asset in the future. Once they start a family, they will need money to run it. As parents, you must teach them how to save and where to invest their money, so that they get good returns in the future.
My parents always said that if one does not respect money, it will never respect you. Hence, it’s important that you keep an account of your daily expenses. Ensure that your children write down all that they have spent, on a daily basis. Then, at the end of the month it will help them to find out their total monthly expenditure. This will make them realize where they have spent more and how can they curb their expenses. Next month, your kid will automatically try and save more by cutting down on expenses. Also, make them understand that this does not make them misers, instead, it helps them become wiser.
Open a Savings Account
One of the most important steps in becoming financially independent is opening a savings account. Help them to open a savings account and also to manage it. Teach them how they can deposit money in that account and also how they can utilize their savings in the most effective and efficient manner.
Ask them to decide on a goal. For instance, tell them that the money saved can be used to purchase a new car or to sponsor their higher education. Motivate them to save, until they go to college or until they have a license and enough money to buy a car. By that time, they will understand how to save money and also realize its importance.
Do Not Carry Much Cash
Some teenagers have the habit of not leaving a store without buying anything. There’s only one way to stop that and that’s by carrying less money. Going to the store or mall with a budgeted amount is something that will enable them to have a good time and enjoy themselves within certain limits. It will help them in curbing unnecessary expenses and will make them spend money only on essentials.
Save the Change
If your teen has gone to a shop to buy something and gets back some change, do not encourage him to spend it. Instead, teach him to save it in a piggy bank. Whatever change one gets back, should go to the piggy bank and teach him or her not to touch the savings, unless really needed. They will get encouraged to save more when they see how the small amount of change saved, adds up to a huge amount after a certain period of time.
The next tip is opening a checking account and this can be done, once he or she has saved enough money. A checking account will make your teen behave in a responsible manner and will also put him into the practice of saving for the future.
These tips should be followed from a very young age. Explain how saving money will be useful to them during the time of an emergency, so that they do not have to borrow money from others. These tips will surely help your teen to grow and develop into a more responsible human being.