Help children save for the future

With the continuing economic changes we all wonder what our children or grandchildren are going to be faced with in regards to their adult financial future:
- Will they beable to afford to purchase their own home ?
- Will HECS be abolished and tertiary education become an unaffordable option ?
- Will the government pension payments cease to exist ?

So frequently we are asked by our members what is the ideal age to encourage children to start saving & secondly ideal ways & tips to encourage this pattern early without discouraging them so they can achieve the best financial start in life.

Research has shown that you can start educating children from as early as pre-schooling age just through some simple ways such as:

• Pocket Money
Rather then purchase your child lollies or small toys during shopping outings, encourage your child to help you do some small jobs around the house beforehand (ie; collect mail, water plants, care for pets) for small amounts of pocket money. Then they can utilise this money to purchase something to that value on their next outing.

• Needs vs. Wants
During playtime at home set up a pretend shop with of a variety of items using proper money. Help them with decisions and prioritising items that they really need for their money (ie; milk, bread & fruit rather then lollies, chips etc)

• Setting Goals
Let your child pick a toy or item they would like from a toy catalogue. Do up a simple chart by sticking a picture of this item on a piece of paper or cardboard then place on display. The child can then map their progress by marking or placing stickers each time they receive pocket money. Continue the process until enough money is reached to purchase their item. Ensure to give praise along the way.

Remember teaching children at this age to save should be made fun by using various games and techniques such as listed above.

Feel free to share your tips on ways you encourage your children to save …

Lisa

PS – Ask your local branch for a “piggy” money box which are provided FREE to our members.

July 7th, 2009 | Leave a Comment »