During the holidays, we often receive a lot of pocket money. The start of the school year is approaching and your child still has some vacation money left.
How can we teach them to save with a good foundation in managing their money?
In this article, we share tips for encourage your child to save vacation money the smart way. You can now teach him good financial habits to help him build his future life on solid foundations.
Up to you ! Follow these simple tips for a thrifty start to school. 👍🏻
Start doing your accounts
During the holidays, your child surely has several sources of income: parents, grandparents, godparents... everyone has spoiled him! To start the school year on a good basis, you will teach your child the good management of your pocket money without suffocating it.
The first step is to do the accounts. 💰 Encourage your child to count what is left of their vacation. He will thus be able to get a real idea and better manage his budget.
It’s also a habit that he can keep every month. To manage your personal finances, it is important to know where you are and where you are going. 👀
Plan your back-to-school expenses
Another tip for save money is plan expenses in advance.
Take advantage of the last days of vacation to teach your child to plan their expenses. Discuss with him the expenses he would like to spend for the start of the school year: a cultural activity, a manga, a hobby he would like to do or sports equipment for example.
By helping him make a planning of your expenses, this allows him to have a clear vision of his future expenses but above all of what will remain after his purchases.
If you plan to establish monthly pocket money, he will be able to anticipate his expenses or spread the expenses over the year.
Controlling your budget means saving money. Give him the tips to achieve this!
Distinguish “wants” from “needs”
Teach your child to differentiate your needs from your wants is a quality that will serve him throughout his life. It’s a financial skill that will help him in his future projects.
To teach him the distinction between needs and wants, it is important to give him concrete examples.
➡️ School supplies and payment for transportation to school are needs that parents must meet. On the other hand, impulsive purchases such as buying a video game similar to one he already owns or buying candy he can find at home are personal desires.
It will also differentiate between daily expenses and occasional expenses. Teach him to resist impulsive spending and to face the unforeseen financial.
This is how you will help him prioritize his finances and develop your sense of responsibility and thrift. Nothing stops you from having fun, of course, but you have to know how to be reasonable with your money.
Set up a “treasure chest”
The treasure chest is a foolproof method for young teenagers! It allows to keep your pocket money, including remaining vacation money. The safe can be material like a piggy bank or virtual like our savings module on the Bloon banking application. 📲
The idea is to see your money grow in the treasure chest and be motivated to save more. You can make it a fun experience by decorating the piggy bank or setting a goal for the savings account like a gift or an activity that he dreams of giving himself.
Avoid impulsive purchases
Holidays are often tempting with promotions, good deals, low prices and holiday offers. Now is the time to teach your child to resist temptations and the desire to buy impulsively.
Before making a purchase, encourage them to ask themselves if they really need it. By teaching him to ask questions, this allows him to manage your priorities and manage your money intelligently to carry out more interesting projects.
A summary of these 5 practical tips?
By saving vacation money, you will help your pre-teen approach the start of the school year more economically and peacefully.
Accounts, planning expenses, distinguishing between “needs and “wants”, setting up a “treasure chest” and resisting impulsive purchases are the 5 tips that will help you acquire good financial foundations.
By involving him in the management of his money, you above all teach him to grow into good habits and valuable financial skills that will serve him well later. This also allows him to put money aside for projects that are close to his heart.
Give him the keys 🗝️ to become a responsible and thrifty teenager for a bright future.
Bloon, the mobile application made for you and your children
At Bloon, we help you follow your child in their learning to save. Our features help your children on many levels!
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