Tips to teach kids how to build savings and instil financial responsibility

Financial responsibility is one of the best life skills you can teach your child, and the sooner you start, the better. Earning money with an honest day’s work, saving money, budgeting carefully, spending mindfully, and investing for a financially secure future are some habits you need to inculcate in them. Here are some cool ways to get your children started on the path towards financial security and teach them the significance of saving money.

Game ideas to encourage saving habits in children

1. Encourage children to count coins

This is a great way of introducing children to the concept of money. You can give them coins, explain how much they are worth, and encourage them to count. You can also make a fun game out of it, asking them to segregate and make piles of different denominations of coins. 

2. Take them out shopping

Explain to your kids how money is necessary to buy any item. The best thing to do is take them shopping - whether it is for groceries, clothes, or toys. This will give them an idea of how much things cost. Even better, set them a budget and give them the freedom to pick items. This will inspire them to think before they spend and buy only the things they really want. 

3. Offer them opportunities to earn

Rather than handing out pocket money, give children simple chores around the house so they can earn it. This could include cleaning their room, taking the dog for a walk, setting the table for dinner, or washing up afterward. This will help them learn the value of money, which will hold them in good stead all their lives.

4. Gift them a piggy bank

Once your child starts earning money, it is time to teach them about saving money. With small children, the most effective way is to give them a piggy bank and encourage them to put the money they earned or received as gifts into the piggy bank. Once they have collected a substantial amount, you can open a savings bank account for them that’s designed for minors. 

5. Play board games with them 

Imparting financial skills is one of the best gifts you can give your child. One fun way to do this is by gifting them a board game such as Monopoly. This will teach them about spending judiciously, buying properties, earning rent, saving money, paying taxes, and more. You can spend some quality time with your child playing this game as well.

Get your child started

IDFC FIRST Bank offers custom savings bank account options for every member of the family. There are dedicated savings accounts for senior citizens, college students, and even children. IDFC FIRST Bank minor's savings account is a great way to get your children to start saving money. This zero-balance account can be linked to your account. Your child can earn high and competitive interest on their savings, credited monthly in their accounts.

Introduce your children to the world of money management with an IDFC FIRST Bank Minor's Savings Account today!

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.