Teaching your kids the value of saving money is one important habit you can instil in them while young. From their point of view, Mommy and Daddy never run out of money since they do not have yet the concept of earning and saving. Here are some tips to make your child understand and appreciate the concept of money and saving it, little by little.
The good old alkansya. As soon as your child can grasp the concept of numbers, and understand that money is used to buy things, get him a piggy bank. A transparent one would work best because your child can visually see his money “growing”. Start with a small one, so he doesn't have to wait too long to fill it. Give him loose change and let him drop the coins himself. Once the alkansya is filled, take out the coins and count how much money he has saved. Ask your child what he would like to purchase from his savings and bring him to the store. Guide him as he purchases – show him 2 options that fit in his budget. Take this opportunity to teach him how some items are more expensive than others, and why he needs to make wise choices. Gradually introduce a bigger alkansya until it becomes second nature for him to save. (Tip: Make an alkansya together with your child using a clear bottle with lid. Punch a coin slot on the lid and decorate the bottle with your child. This will make him more excited about putting coins in it.)
Double the savings. As your child gets a bit older, you can challenge him to save more by matching the amount he saves. Say, if he puts in P5.00, then you will also put in the same amount, thereby doubling the savings. If someone gives him money as a gift, give him the choice of spending it or saving it. If he decides to save it, make sure you double it as well. The objective is to encourage your child to save more by helping him with a little motivation.