How do I teach my 12 year old about saving?

I would like to teach my 12-year-old son about saving but I am not so sure of how to start. I do not want to just give him money as this may make him think that saving does not require working hard to earn in the first place. I also don’t want him to be so money minded. How do I go about this?

I would like to teach my 12-year-old son about saving but I am not so sure of how to start. I do not want to just give him money as this may make him think that saving does not require working hard to earn in the first place. I also don’t want him to be so money minded. How do I go about this?

Grace, Kanombe

Dear Grace, it is very nice of you to think of imparting some financial skills in your son at a very early age. What you have set out to do is quite commendable. Here are some few things you can do to achieve your goal.

You can start by finding a jar or piggy bank where your son will drop coins or money whenever he gets it. Make the child understand that the money in the jar is his and that if he chooses to spend it then he has nothing left so he should think wisely in case he wants to spend it.

Now that he has a jar where to ‘bank’ his little money, make sure you occasionally give him allowances for good conduct or for tasks accomplished. You can set a weekly allowance of Frw500. This will teach him that money often comes periodically and so should the spending. You are introducing the time factor in money. Remember, time is money.

Once the money accumulates, he should be able to learn something about spending. If he wants something like a toy, how about you sit and agree that he contributes a little to buying it using his savings? This will help him appreciate the value of money more.

He should have goals too. Why is he saving? And also you as a parent should be a good example.

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