Saving For Child And Instructing Them On The Value Of Money

Children are capable of learning valuable lessons very early in life. They completely understand when they want that toy while shopping, but do not like hearing the word no when they cannot have it. Young children usually do not receive an allowance, but if given a proper explanation they are capable of understanding that the toy will have to wait until the money is available to purchase it. When teaching children about money and saving for child, they too can experience excitement of accomplishment and learn valuable lessons in patience as well.

A change jar is a good project that can involve the entire family and teach even young children that pennies can make a difference. Make sure the jar chosen is large enough to accommodate a lot of change or it will require several jars. The entire family should decide what the money will be spent on like a trip to a favorite amusement park or perhaps somewhere out of town for an educational museum trip. Children save money best with they are focused on a goal they really want.

When planning the trip try to remember that young kids do not have the same patience as older ones and the time limit should be considered. Each family member should place left over change in the jar daily and just watch the money grow. The kids can research trip information while saving money and find out approximately how much it may cost. In a short period of time there will be enough money to make the trip and the kids will have learned an important lesson.

Kids can also enjoy learning about the stock market and making investments to save for college or a car. Many stocks will excite even young children if the proper companies are selected such as toy companies, game developers, animation developers, etc. Purchasing a few shares is quite inexpensive and when the stock goes up or splits it is exciting and when stock drops it is a valuable lesson as well.

In order for children to realize from a young age that money is earned and not just something that is given upon request, they should be allowed to perform small tasks for an allowance. Tasks should be in line with their age and capabilities and even if they are not performed perfectly, it is important that the child understands that they are being rewarded for the completion of the task.

Things that are earned seem like they are much more valuable because it has taken more effort to get them. Children who earn their own things will generally take better care of them as well. Kids can learn the importance of work ethic and how valuable saving that simple penny can be. Saving for children is an very important lesson, so as a parent make sure you consider how you are going to teach them this.