Competition Time: Teach your child to save by winning this money box

Saving money is a habit that takes time to form, but having a powder coated galvanised steel money box is a perfect gift to give to your child so that when they are older, their habit of saving has been developed.

Here are some tips you can use to teach your child the importance of saving:

1. Discuss wants verse needs

The first step in teaching your child the value of saving is to help them distinguish between wants and needs.

Explain to them that their needs include the basics, such as food, shelter, and clothing, and wants are all the extras or ‘luxuries’ that they can live without.

Help your child to draw up a budget about what should take precedence in terms of spending.

2. Let them earn their money

Have them do chores such as keeping their room tidy, and help with household chores to earn pocket money.

3. Set savings goals

To a child, being told to save—without explaining why—may seem pointless. If they know what it is they want to save for, help them to break down their goals into manageable bites.

4. Provide a place to save

Once your child has a savings goal in mind, they’ll need a place to stash their cash.

5. Have them track their spending

Part of being a better saver means knowing where your money is going. If your child gets an allowance, having them write down their purchases daily and adding them up at the end of the week can be an eye-opening experience.

6. Offer savings incentives

If your child has set a big savings goal you could offer to match a percentage of what has been saved. Alternatively, you could offer a reward when your child reaches a savings milestone.

7. Leave room for mistakes

Part of allowing a child to have control of his/her money is letting them learn from their mistakes. It’s tempting to step in and steer your child away from a potentially costly mistake, but it may be better to use that mistake as a teachable moment.

In that way, they’ll know in the future what not to do with their cash.

8. Act as their creditor

One of the basic tenets of saving is to not live beyond your means. If your child has something he or she wants to buy and is being impatient about saving for it, becoming your kid’s creditor can help to teach the value of saving.

For instance, if your child wants to purchase something that costs R100, you could “lend” the money and require payment from the allowance you provide, with interest.

The lesson you want to teach is that saving may mean delaying gratification longer, but the thing you want to buy won’t end up costing more you if you wait.

9. Talk about money

If you want your child to learn about saving, it must be an ongoing discussion. Whether you schedule a regular weekly check-in to talk about money or make money chats part of your daily round, the key is to keep the conversation going.

10. Set a good example

Encourage ‘saving’ as a family activity. You could also decide to save for something together, such as a family vacation or a pool.

The bottom line is that making saving a regular part of your child’s routine can lay the foundation for a bright financial future.

The tips outlined here are a good place to start.   

Here is your chance to enter the competition to win the powder coated galvanised steel pocket-sized money box that is designed to last for years:

The closing date for entries is September 30 at 5pm.

For more information follow Cash Coffer on Facebook.

Winners will be drawn at random and notified telephonically.

The prize cannot be exchanged for cash.

Terms and conditions apply.