Setting up savings goals and enrolling young people in youth literacy programs are just some ways young people can grow up financially aware. Showing children or adolescents how to budget and plan should be compulsory, and it can fundamentally teach young people how to be savvy adults.
Read on to learn what ways young people might curb a desire for instant gratification and avoid impulse buying in the future.
Credit cards: Without a true understanding of what credit cards are, some young people acquire cards and begin to borrow from lenders early. It’s important that older individuals sit down with young people and discuss the dangers of spending money electronically, especially using a credit card. Credit cards are a great tool but they can give you a helpful boost into drowning debt. The next time our child asks you where money from a credit card comes from, explain that the transaction isn’t magic. Allow your child to ask questions about credit card usage and how to safely borrow using credit cards.
Cash and Coins: Digital spending is on the rise, but children still use physical currency as a tool for counting, learning, and saving. The tangible experience of cash has long been fundamental for education. It’s necessary that young people see that there’s a difference between spending money on something like candy vs. a toy car. The candy is cheaper and offers instant gratification. However, the toy car is more expensive but has ‘wealth’ that maintains for a while.
Grocery List: Allow your child the opportunity to help with the shopping list. If your child gains an early understanding of needs vs. wants, ahead of entering the store, they’ll have a greater sense of responsibility, and see the importance of sticking to an established agenda.
Use Jars, not Piggy Banks: Jars are so much better for saving because they’re clear; also they can separate money as they collect. Rather than sticking all of one’s money in the same jar, young people can set up three jars for spending, sharing, and savings. They can give their different money jobs by using different jars. Similarly, they can do the same thing by using different apps.
In addition to the other tips, you may want to incentive savings by encouraging adding to your child’s saving when they save. You can track savings in a public place. If you have any other thoughts about helping young people to save early and often, please share!