Encourage the habit of savings!

encouraging savings is essential! think of saving as a small but vital resource—like a safety net. the first allocation from a household's income should be for savings, followed by other expenses. it's crucial that this habit isn't just practiced by adults; children should also learn the importance of saving.when adults prioritize saving, children are more likely to adopt this behavior. unfortunately, this vital lesson is often overlooked in schools, so it's up to parents to emphasize the significance of saving at home.introducing bill savingsa great way to introduce saving habits to children is by encouraging them to save money. provide them with cash, show them how to count it, and encourage them to deposit it into a piggy bank. motivate them to use their savings to purchase something they desire or, even better, to donate part of it to those in need. when they accumulate enough savings, they can treat themselves to a special gift, reinforcing their saving behavior.understanding essentials vs. non-essentialssaving money in a piggy bank is valuable, but learning to avoid unnecessary purchases is equally important. children naturally gravitate towards attractive items, but it's the parents' role to help them discern between what is necessary and what isn't.instead of buying everything children ask for, encourage them to use their "pocket money." you can assign small tasks to earn this money, which teaches them responsibility. this way, they'll be more inclined to save for desired items. teach them to evaluate whether an item is truly necessary or if saving a little longer could lead to a better purchase. this practice helps them learn to distinguish between wants and needs, turning pocket money into savings.teaching budgeting skillsdiscussing the family's income, household expenses, entertainment costs, school fees, and monthly savings with your children can be enlightening. take them along when grocery shopping, explaining the prices of each item and the total cost of the groceries.help them understand the price fluctuations of essentials like tomatoes and onions and how non-essential items often carry a higher price tag. as they grasp these concepts, they will better understand the need for saving.intimes of medical expenses or emergencies, having saved money can make a significant difference. when children witness the practical benefits of saving, they'll learn that small, consistent savings can help them navigate challenging situations in the future.