Of course, parents do not intend to create 5-year-old economists, but I do believe it is important for children to learn the meaning of saving since they are very young.
By understanding what it is for and how money is managed, we teach them to value things more and to instill in them the benefit of saving and the harm of waste.
Our Daily Savings partners give us some keys to teach them to save which we review below adapted to younger children.
Take them to make the purchase with us. In this way we can explain what things are of first necessity and which we can do without because "everything cannot be done".
Explain in words that they can understand what a budget is and give them examples within their reach (for example, with school supplies) on how you can save by buying the same thing in different places.
If they ask you for money, charge them a small interest (negative for them) in return, it doesn't have to be money, but they will learn to know that what they want costs. On the contrary, if you tell them that their savings we keep them for a certain time and that later we pay them with interest (positive for them), they will learn what it is that they hear so much in daily life.
We should never pay them for collaborating at home. If they do any extra work they may have some kind of reward.
When they want something special (a toy, a costume) we can enable a piggy bank in which they will save their savings until they get to collect the necessary amount to buy it.
With these tips children will begin to understand some notions of savings that will be of great help throughout their lives.
