The money that kids usually receive from their relatives for various reasons , like for birth day and Christmas are spend in a very simple fashion. Kids go to the market and get themselves a nice toy. Well that is quite obvious; money is something to be exchanges for goods and services.
Kids can go on buying toys as many times as they want, so it parents who have to guide their child how to save and spend money for the right things.
The same thing happens to my child, he keeps on buying toys over ands over again. Even if he has two dollars, he would want to have a car in his toys. A few weeks back he had two dollars to spend at the market, for quite a long period of time he was trying to get a pullback cat that cost seven dollars, and he only had two dollars with him. I make him understand that this car costs seven dollars and you have only two dollars. He worked out through his fingers and understood that he would need four dollars more.
That did not make him forget about the car and he was still interested in buying it. I made him understand that if you do not spend these two dollars now and take them home back, you would be able to buy this car in the next few months. After thinking for a couple of minutes, he decided to spend one dollar and try the concept of saving with the remaining one dollar. As we got home, I found a jar with a lid on it and put the one dollar in it so that he could see it.
That jar now lies on our kitchen counter and my son keeps on adding money into it. He can clearly see his savings building up. It knows what he is saving for and he enjoys adding money to this jar whenever he can. Saving money has become very exciting and easy for him. It’s quite tangible and he can see his savings growing up. He has a small goal that is reachable for hi too. I found this one of the best ways to teach him the habit of saving money. This can work for the rest of your kids too; you just have to set a different goal for each that can be met easily.
Set a clear and tangible goal for saving: Your child must know exactly what he is saving for. You need to estimate what exact amount you need to meet in order to reach your goal. You should keep on telling your children about the reward of their saving too, so that they can enjoy and keep this habit of saving going on.