Have you ever heard your kids saying something like:

 

"I don't need to save! My parents will buy whatever I want for me!"

 

 "Well, mom and dad said they saved a large sum of money for my college fee, but I got no idea how much I need nor why should we save it."

 

If that's the case, we would highly recommend you to convey the concept and goal of savings to your beloved children. While kids at their primary school or middle school, the college fee appear to be too distant from them. Thus, we would suggest parents set more relatable and attractive goals for your kids, for instance, save for their PS5 or Barbie.

 

Source: Metro

 

Here are a few tips we have for you: 

 

Start early

 

You might not have to enrol your kids in expensive extra-curricular courses like ballet or Latin, but cultivating their saving habit is something you want your kids to pick up early in their childhood. The earlier your child understands this concept, the more time they will have to practice and experience just how great it is to reach their goals.

 

Source: CAGR Funds

 

Be Frugal

 

A concept being repeatedly highlighted in the book "The Millionaire Next Door" by Thomas Stanley and William Danko was being FURGAL. If you wish to be a millionaire, merely making a relatively large income is not enough, daily saving and sound investment play a more critical role in wealth accumulation. 

 

Source: Amazon.com

 

One of the suggestions from the book is to nurture their frugalness by delaying their satisfaction. Say your 5-year-old son Sam is craving for ice-cream that worths 2 dollars, what you could do is to give him a dollar today and tell him you would give him another dollar tomorrow. As a result, Sam would learn to save for a greater goal at a very young age. 

 

Give the kids a piggy bank with their name

 

Ownership of something is very desirable for children. If possible, allow your son or daughter to choose their piggy bank themselves, and they would definitely make it their treasure.

 

When choosing a piggy bank, it is best to choose the kind that has very little or no opening. So it will not be easy for children to use the money secretly after putting it in.

 

Source: Investopedia

 

Reward them

 

Reward and positive feedback are crucial to strengthening children's good behaviour. When children demonstrate good saving behaviours and habits, parents can reward them with their favourite activities or special treats like storytime, visiting theme parks, etc.

 

Source: Verywell Family

 

In addition to the actionable items we mentioned, we also strongly encourage you to check out Mellow's website: https://www.mellowapp.io/ for more insightful articles related to parenting money-smart kids. 

 

Source: 

Share Save Spend: Healthy Saving Habits for kids

Warren Buffett Secret Millionaire’s Club

IFEC - Encouraging good saving habits in children

Kknews: Importance in teaching children to save for their future

 

 

 

 

 

About us

As a leading startup in the FinTech space, AQUMON aims to make sophisticated investment advice cost-effective, transparent and accessible to both institutional and retail markets, via the adoptions of scalable technology platforms and automated investment algorithms.

AQUMON’s parent company Magnum Research Limited is licensed with Type 1, 4 and 9 under the Securities and Futures Commission of Hong Kong. In 2017, AQUMON became the first independent Robo Advisor to be accredited by the SFC.

AQUMON’s major investors include the HKUST, Cyberport, Alibaba Entrepreneurs Fund and the Bank of China International's affiliate.

 

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