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Tips to Help Children Learn to Save, Teach Them to Manage Their Eid THR Money Wisely

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Tips to Help Children Learn to Save, Teach Them to Manage Their Eid THR Money Wisely Illustration of a Child Enjoying the Habit of Saving / Freepik by drobotdean

Kapanlagi.com - THR for school students is a golden opportunity to learn how to manage finances wisely. However, how can we ensure that the THR money does not run out just like that? Here are some practical and fun tips that can help children learn to save and use their money wisely.

The first step is to teach them about basic financial concepts such as income, expenses, saving, and sharing. Additionally, create a simple budget plan and choose a saving method that is appealing to them. The role of parents is crucial in guiding children through this process. With the right approach, children will not only understand the value of money but also develop good saving habits from an early age. Remember, teaching children about financial management is a valuable long-term investment.

Moreover, it is important to involve children in the financial decision-making process, as well as teach the values of sharing and investing if possible. Monitoring their savings progress is also highly recommended. With consistent support and guidance, children will grow into responsible and wise individuals in managing their finances. So, get ready to guide your little ones in managing their THR and create an invaluable learning experience

1. Teach Basic Financial Concepts

To begin, it is very important for us to introduce basic financial concepts to children in an engaging and easy-to-understand way. You can explain about income as a source of money, expenses as the way we use money, saving to prepare for the future, and sharing as a form of donation. To make it easier to understand, you can use play money or small amounts of real money as simulation tools. For example, you can compare needs like notebooks with wants like new toys, so that children can see the difference directly.

Additionally, also teach children about the value of different denominations of money and how to count them. Show them how money can be used to buy the goods and services they need or want.

To make this learning process more enjoyable, create a cheerful and engaging atmosphere. This way, children will find it easier to understand and remember the information provided. With a good understanding of these concepts, children will start to realize how important it is to plan their spending and save for their future.

2. Create a Plan and Set Saving Goals

Once children understand the basic concept of saving, encourage them to set clear and achievable saving goals, such as buying books, educational toys, or stationery. Try to visualize these goals by attaching pictures of the desired items near their piggy bank.

Next, create a simple budget plan with the child. Determine how much money will be saved, spent on necessities, and spent on wants. Adjust this plan according to the amount of holiday money they receive. With a structured plan in place, children will be more motivated to save and achieve the goals they have set.

3. Choose an Engaging Saving Method

To foster a saving spirit in children, choose a piggy bank with an attractive and unique design. A transparent piggy bank can be a great choice as it allows the little ones to see the progress of their savings directly, thus boosting their enthusiasm. As another alternative, you could open a special children's savings account at a bank. This step not only teaches them about the importance of security but also provides an understanding of the ease of access to the money they save.

Additionally, teach children to set aside a portion of their daily or weekly allowance. Start with a small amount and gradually increase it over time. Don’t forget to teach them how to collect loose change and save it separately.

In this way, children will learn discipline and understand that even though the amounts are small, if collected consistently, they will add up. By applying these various methods, saving will become a more enjoyable and effective activity for children.

4. Involve Children in Decision Making

Encourage children to participate in every decision related to managing their Holiday Allowance (THR) money. Invite them to discuss the best ways to utilize that money and help them make the right decisions.


By giving them the opportunity to be directly involved, such as allowing them to choose items they want to buy after considering the budget and needs, children will gain valuable experience. This not only makes them feel valued but also teaches them about responsibility in managing finances. In this way, children can learn to make wiser and more responsible financial decisions.

5. Teach the Values of Sharing and Investing (Optional)

Teach children about the importance of sharing with others. Encourage them to donate a portion of their THR money to charitable organizations or help those in need. For older children, consider introducing the concept of simple investing, such as buying gold bars or mutual funds (with parental guidance).

6. Monitor and Provide Support

Pay close attention to your child's savings progress and provide the support and guidance they need. Offer praise and appreciation for their efforts in saving and managing money, as this is very important. Consistency is the key to teaching the importance of saving and how to manage finances to children. Be a good role model by showing how you manage your own finances.

By applying these suggestions, you can help children learn to manage their THR money wisely. This will help them build positive saving habits and prepare for a brighter future. Always remember to adjust this approach based on your child's age and understanding.

7. Common Questions About Saving

1.Why is saving important?

Saving is important to ensure financial stability, face emergencies, achieve financial goals, and prepare for a better future. By saving, we can avoid unnecessary debt and be better prepared for unexpected needs.

2.How to save effectively

Some effective ways to save include:

• Setting clear savings goals.

• Creating a budget and tracking expenses.

• Using the "save first, spend later" system.

• Utilizing auto-debit features to set aside savings automatically.

• Avoiding impulsive spending.

3.What is the difference between savings and investments?

Savings are money set aside for short-term or emergency needs and are usually kept in a bank with low risk. Investments are funds used to gain long-term profits, such as through stocks, mutual funds, or real estate, which carry higher risks compared to saving.

4.What are the benefits of saving from an early age?

Saving from an early age teaches good financial habits, provides a sense of security for the future, and helps a person achieve financial goals more quickly, such as buying a house or retirement funds.

5. Where is the best place to save money?

The choice of where to save money depends on the purpose:

  • Bank for security and ease of access.
  • Piggy banks or savings boxes for daily saving habits.
  • Deposits if you want your savings to grow more with higher interest.
  • Investments if you want your savings to grow in the long term.

By understanding the importance of saving and applying the right strategies, we can build healthier and more stable finances!

(kpl/mni)

Disclaimer: This translation from Bahasa Indonesia to English has been generated by Artificial Intelligence.
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