Teach your children how to save money

I've met many adults who cannot save money to save themselves. These people live from pay check to pay check, never saving money for those unexpected emergencies. Many of whom are also thousands of dollars in dept and spend money they don't have on things they don't need (just want for the sake of consuming). What is curious about these adults is they have parents who live the same way and therefore never taught their children how to save or the importance of it.

It is a simple thing to do and here's how you do it. Teach your children to always spend LESS than they earn. Maybe they earn $10 a week pocket money, or they walk dogs for money, or wash cars, or receive money on special occasions. However they get their money teach them to save a portion of that income. Even if it's $1 out of $10 it adds up over time and takes discipline not to spend.

Have them put this money in a piggy bank that cannot be opened (or a real bank if you've set them up an account). Each time they receive money have them put some aside for a rainy day. When they eventually use this money for what ever they wish to spend it on, have them keep some of that money aside, so they don't spend it all.

As they get older and their income increases, maybe the get a job at a fast food restaurant, have them save more of their income i.e. $20 a week out of their pay check. This can vary from week to week depending on what their expenses are. Also talk to them about needs vs wants. Do they really need those $300 shoes or those $500 expensive speakers?

In an age where consuming is practically all we are taught about living, and attaining money is the point of existence, you want to find a healthy balance between teaching your children to appreciate money and not being gluttonous and not be like Mr Scrooge. Money is a necessary evil and something we need to be able to manage well as adults.