Experts from «Finkultu» provided five tips for parents on how to teach a child to plan their spending and save money.
Set a specific financial goal and a savings plan
The first step — suggest the child choose a specific goal: for example, a bicycle, a new gadget or a trip. Together determine the purchase price and draw up a savings plan.
The article gives an example: “each 50 hryvnia saved is another step towards making the dream come true.” Regular small contributions make the process achievable.
Record expenses and monitor daily purchases
The tip — ask the child to record for a week what they spend their pocket money on. Based on the records, discuss together which purchases can be skipped to save faster.
Experts recommend explaining the difference between income and expenses, as well as between needs and wants. For practice they suggest the envelope method: divide money into several categories — essential purchases, entertainment, hobbies and savings.
Use visual tools and the “pay yourself first” rule
Introduce a “Dream Map”: draw the goal, state its cost and regularly put money into a separate piggy bank. Regularly mark progress so the child can see the result of their efforts.
When receiving pocket money or earnings, explain the principle of “pay yourself first”: a portion of the amount can be set aside immediately, and the rest used for current needs and wants. The size of the savings need not be large; regularity is what matters.
