Ways to make saving fun for your child
So much of parenthood is about nurturing your child emotionally and mentally. That includes preparing them to handle money. Sure, they could play shopkeeper, banker, or Monopoly. But beyond play time, how else can you teach them to handle money well? Here are some ideas:
Use different containers
This is an interesting way to teach your child about short and long term goals. For example, use a big jar to contain savings for an overseas trip and a smaller container for shorter term goals like saving up for a toy. Get your child to draw the labels for each jar.
Draw a savings chart
Once your child has identified his savings goal, you can help him make a chart. First, divide the savings goal into steps. For example, if the savings goal is S$50, divide it into 10 steps so that every time he saves S$5, he can place a sticker. This way, he can see himself getting closer and closer to his goal.
Using the savings chart, you can reward your child if he saves more than the intended amount or reaches his goal earlier than planned. Simple rewards can be an ice cream treat or extra half hour of TV time; or you can even match the extra savings as a ’bonus’.
Be a role model
Take the opportunity to show your child what it is like to save money when they grow up. You can use iBanking or your savings passbook to explain the benefits of saving in a bank account, such as security and interest earnings. It will inspire them to keep up with the good habit of saving later in life.