The Chinese New Year brings extra cheer to young children as they collect the red packets from their elders. As for parents, there is no better time to teach children about how to develop a saving habit, which can educate and empower them to be responsible and eventually financially independent.
Teaching Your Kids to Save
Unlike their regular pocket money, the children would have likely received a higher amount from their red packets. This is the opportunity to get them started on a mini "wealth management." Talk to your children about what they want to do with the money and their saving goals, before devising a savings plan.
Money saving tips for children
1. How to start saving?
While the children may have already been saving their pocket money in their piggy banks, parents can help them understand the benefits of long-term savings with their red packet money and why they should not have their savings within easy reach. The post Chinese New Year period is a good time for parents to open saving deposit accounts for their children if they do not already have one.
2. Form a monthly savings plan with kids
A good approach on teaching children about achievable saving is to ask them to set aside the red packet money, set a goal and contribute their pocket money every month towards the purchase. The goal can be their favorite toys or snacks, but parents should also educate their kids that there’s nothing more valuable than their health.
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