Creating A Financial Plan That Encourages Children To Save And Spend Wisely


One of the key things that you as a parent must teach your child is how to respect and appreciate money, have a proper financial plan and how to spend rationally, and have a good savings plan. 

Experts believe that children should be introduced to the world of finance, savings, and rational spending of money as early as possible.

You may be wondering why? Children must acquire good habits from a young age when it comes to spending and saving money because when they become adults they will be thankful. 

One of the best ways to teach your children about financial literacy and responsibility is by giving them a kid debit card.

The Origin Of Money And How It Is Earned

You must clearly explain to children that money is earned through hard work. Money should not be taken for granted but should be respected. 

Many children think that their parents have easy access to money and that they have it in large quantities, which is not the case.

Money does not come from magic trees, magic machines (ATMs), or fall from the sky.

Give Them Responsibilities

Children will learn how to respect money if they perform certain tasks within the household.

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There are certain responsibilities and activities that children must complete to receive pocket money or earn extra money.

Children must participate in helping to fulfill obligations within the household and community.

Depending on their age, you give them appropriate tasks that they must complete within the stipulated time limit.

The Importance Of Savings

For children, the concept of saving is somewhat complicated and incomprehensible unless you motivate them to save for a toy, game, or something they crave.

In this way, you motivate them not to give in to the urge to spend money immediately but to save for some higher goal that they have set. 

In most cases, children will copy you, so it is very important to be the best possible example. In the process of saving, children must have motivation and determination.

Let Them Participate In The Procurement Of Groceries

We suggest that they partly participate in the purchase of groceries. In this way, children will have a better idea of how much it costs, and when the money comes out of their pocket, in most cases they will give up buying some unnecessary things that they may have temporarily put on the list.

Also, if they want to buy a game or a toy, they need to allocate their money.

An Important Difference Between Wants And Needs

Needs include the basic expenses that every family must pay to have a functional and normal life.

From paying rent, bills, loans, fuel, food, drinks, clothes, and shoes, as well as numerous expenses that arise during the month.

When parents pay all the basic expenses, little money is left for their wishes.

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Explain to them that sometimes they can fulfill a wish, but not every day. Sometimes it’s better to wait and be patient than to react immediately and buy something they don’t need.

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Get Them A Kid’s Credit Card

One of the best ways to teach them all kinds of finances is to give them this type of card.

The options they have within this option are diverse from creating a savings plan, rational spending of money, investing in shares, donating money to charity, and earning money while completing tasks that parents set up for children within the time limit. 

What is innovative is that parents and children have everything in one place and can easily monitor the activity that the children have on the account.

This option has made life easier for many parents and children around the world and has become one of the best tools for learning financial literacy, saving, and rational spending of money.

Let Them Make A Mistake

We all learn best from our own mistakes. Therefore, if the children make a mistake, and spend money suddenly, we advise you not to help them.

In this way, they will learn the lesson that they need to learn how to properly distribute money.

Because if they learn that you will jump right on to help them every time they make a mistake, you are doing them more harm than good. They must learn to take responsibility for their actions.


No beginning is easy, but don’t be discouraged, you are teaching children one of the most important skills they will need for a normal and functional life.

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