When kids get money, it has a tendency to burn through their fingers and burn holes in their pockets. It just seems like kids these days do not know the value of a dollar. This could be because they really have not been exposed to the right kind of skills that lead to developing a healthy savings plan. The following are five skills you can teach your kids to make them better savers.
Pay Yourself First
Rich people always live by the principle of paying themselves first. Generally, this is money they are going to put from their earnings back into savings until it is needed. Delegating a certain percentage of every dollar earned for savings is always a great way to get your kids used to being responsible savers.
Squeezing More out of Their Budget
You can teach your kids how to budget in ways that cut waste out of their spending habits. By making little sacrifices on the spending side of their ledger, they will find that they are left with more money to work with after the total is computed. This extra money can be shoved into savings or split between savings and other important projects they want to fund.
Teaching your kids that it is okay to save money buying generic brands is a huge step forward in making them excellent penny pinchers. Often generic items are only different in name and price, not in quality. So, they should learn that they will get more mileage out of their allowance if they choose generic products over name brand products.
Eat at Home
Kids love to eat out at fast food restaurants. Unfortunately, doing this all the time can get a little expensive. Training their pallet to like inexpensive, home-cooked meals, instead of eating out so much, will help them to hold on to more of their hard earned money.
Saving While Driving
Your child is eventually going to have their own first car. They can learn to save money by doing their own car repairs too. Low-cost auto parts for cars can be obtained through salvage yards, and cost way less than buying the same parts retail. This is good news if your child is looking to restore an old classic, or is working on some project car with Mom or Dad.
There are many ways kids can learn to save money. It is never too early to start teaching them how to be savvy savers. The more they learn to save when they are young, the more they will have to fund life with as they get older.