by Margie S. Danes, OCTOBER 2021
The most difficult step in every plan is how to get started. Of course, your first goal is to get your child’s attention. They need to understand the basic concept of budgeting, why we need to do it, and how important it is. Your child most likely needs your help for them to get involved in simple budgeting techniques, prepare their mindset in the reality of life, and get ready soon.
If you have recently presented or are about to present the idea of a savings plan to your children, we recommend starting with one achievable, short-term goal and seeing them accomplish the goal.
Check out the below, saving tips and enjoy bonding, saving, and learning with your precious little ones!
- Create a Savings Plan Together.
You can start by working with them to choose the item they would like to save up for. It should be something they’re excited about and something they can afford over a reasonable period. Once you have agreed upon the item and the timeframe, make sure they understand how much the item costs and how long it will take to save. These details are vital to their success. Come to a decision together about how much money they will set aside regularly and how much they will have saved at the end of the period.
If you are giving a monthly allowance, you may also start introducing the savings formula: Allowance – savings = expense. You may start with30% savings and tend to increase if applicable. You may invest the savings thru stocks or cryptocurrency which is booming the trade market during this time. You may allow them to spend the savings for their most wanted item to show them how sacrifices are paid off in the end.
2. Help Them Visualize Their Progress.
Make a chart with a picture of the item your child is saving for and track their savings activity so they can visualize their progress. Also, provide a place for them to save. This might be a jar, a piggy bank, or a savings account. Younger children might have more success with a translucent container so they can see the accumulation of coins.
3. Praise Them for a Job Well Done.
Encourage your child along the way. Remember that for some kids, time tends to pass slowly. Two weeks might breeze by for an adult but can seem like a lifetime for a younger child. Stick to the period you have agreed upon and remind them that the day they are saving up for will indeed arrive. Praise them for their patience and accomplishments along the way and continue monitoring until they have achieved their goal.
Adhering to a budget and executing a savings plan takes practice and a lot of self-discipline. It is a continuous process and dedication. Once you have mastered and lived the process, it comes out naturally later on. The more you learn, the more you earn!
About the writer:
Margie S. Danes. A Certified Public Accountant with extensive 14 years of experience in the fields of Accounting. Explored and mastered the end to end finance process from recording up to financial reporting. Loves writing and it was such a dream come true when she joined the Southlink Newsletter team in January 2019. With her family as her inspiration, spend most of her free time with her beloved family. Favorite quote is “Decisions are made to make things happen, we are what we are because we decided to become what we are!”