Start young and make saving a good habit
Do your kids ever say:
"Whenever I want something my parents buy it for me. I don't need to save"!
"Mom and Dad say they're putting away money for my university fund. But I don't know how much has been saved or how much we need".
"What's wrong with spending all my pocket money? I'll get more next week"!
If you, as a parent, pass on to your children the concept and goal of saving, you will have helped form good saving habits at an early age and they are less likely to say the above. For example, while your child may be aware that you have to save up for their university or college education, the idea of saving could seem distant and probably won't inspire them to save. Children are more motivated if they set their own goals, and then draw up a savings plan to achieve them.
The following three pointers may be helpful:
Three steps to saving
Step 1: Opening an account
Step 2: Set a savings goal
Whatever agreement you make with your child about saving - stick to it. It's easy in a moment of weakness to try and help your child out and pay up front, but this sends the wrong message.
Step 3: Set a savings plan
Teaching by example is the best thing that parents can do. Why not set your own savings goal with your child, make it a competition and offer timely rewards? You can achieve twice as much, with half the work!
