The Supreme Savings Strategies for Grandchildren Make The World Better for years to come. Teaching supreme savings strategies to grandchildren is an intensive saving action plan.
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The focus of this strategy is to show how grandparents can teach their grandchildren to save money. The number one thing that all millionaires have in common is that they learn how to save their money.
Consequently, demonstrating and teaching supreme saving strategies to your grandchildren is a beneficial life lesson. This strategy is shown in another article in more detail, to read click here.
Learning how to save money is rewarding. However, learning how to save at the ultimate rate, is a superior accomplishment. On the other hand, teaching your grandchild to use supreme saving strategies and become a millionaire is much more gratifying. Even more so, it makes the world a better place by teaching them a skill.
Determine What Your Grandchild Already Knows
In this article, we are talking about both young and teenage grandchildren. Their ages range from four to seventeen. As a young grandchild, they may need additional help to learn to save. After a few years of this training, they should have it down pat.
Also, depending on the age of your grandchild(ren) you may need to teach them coin names and values. Once they master coin values, you can start developing your savings plan with them.
Steps to The Supreme Saving Strategy
Teaching supreme savings strategies for grandchildren has four to six steps. It also has one target goal, to instill in them a supreme savings mentality. These steps vary depending on how much you break them down. This informational 3-piece money wise bank “Giantsuper Smart Piggy” provides tons of help. It is an awesome asset for young grandchildren.
I also recommend “Teach Me How To Money Now: 8 Simple Lessons” as a very good resource for teaching your grandchild how to save money. Here is the link for this outstanding book Teach Me How.
Teach Your Grandchildren To Earn Their Money
Step 1. Determine how much money your grandchild will make.
Teaching the children how to make money also means teaching them how to work. Children at the age of four to seven need to learn how to clean their rooms. A few simple chores that I used with my grandson are:
- Cleaning his room
- Making his bed
- Folding his clothes
- Separating wanted and unwanted toys
- Helping his mom or dad clean the car
I believe that doing the chores creates “a work” for my money mentality. Most of the time children get an allowance. But, the allowance is for being in the family. I have seen that theory become trouble after the child becomes a teen. Nonetheless, everyone wants to get paid for their work.
Step 2. Determine how much each job will pay.
As a grandparent, you are in control of the wages. You get to decide how much and how often you want to pay. I like showing my grandchild the pay rate for each job. That gives them the choice of doing additional work for extra pay. In addition, showing them the pay for each area helps them learn how to prioritize. It helps them move work and money from abstract to concrete thinking.
I used this step as a three-fold strategy. I taught my daughter to count money. Then I taught her how to count the change she would back from a store or at the bank. Then I taught her how count her money and support her savings strategy.
Make The Supreme Saving Strategy a Real Life Adventure
Step 3. Teach supreme savings strategies that reach into the future
This step is probably far above the understanding of a young child. But remember that you are the grandparent and teacher. Therefore, you can explain it over and over, until they can demonstrate their understanding. Once you decide on how much to save, take the child with you, and open a bank account.
Then explain everything about having a saving account. I also explain how money grows as it is deposited into the account. I like to use a bar graph so that it is easy to understand when the saved money increases. When you are able to make the saving strategy real life it will them better savers, and create a better world for them.
Step 4. Review the facilities before choosing, so that you the right savings facility
Next, you want to investigate savings facilities. I chose to say a savings facility instead of the bank because you may find the best deal at a credit union. Also, while you are investigating facilities, review the different types of savings accounts. For example, a regular savings account, a CD, a flex account, etc.
Consequently, choosing the right savings account is the most important step. The right savings account will pay the best interest. Also, remember that interest is passive income. Here are is the link to Nerd Wallet where a comparison shows a few different children’s savings plans.
Help your Grandchild See the Link: Budget and Save
Step 5. Grow the Saving Account with The Child
I opened a saving account when my grandchild was around two or three. I like this strategy because it is flexible. This strategy can be geared up or down with personal income. It also provides the flexibility to change as your grandchild becomes a teen. Now that your grandchild has grown into a teenager, you should teach them how to spend money.
Working with a Strict Budget
I use cause and effect scenarios with teens to teach spending discipline. The cause and effect scenarios are plain and simple and the teen cannot miss the point. I use scenarios that include credit cards, cell phones, and shopping debt. I teach them a simple and easy budget for supreme saving. The budget uses a 10 percent tithing + 10 percent living + 80 percent savings strategy. Learning how to save at this rate will significantly change your grandchild.
Step 6. Stick it out.
Stick it out. Keep using the supreme savings strategies for grandchildren. Learning to budget everything will help them save more money. In return, their world becomes a better place. How they get a world that is not filled with debt. They also get a world where they can have many of the things that others have, but debt-free. Remember saving is the key to being rich.
Also, learn how to give. Giving like saving may start small, but just as the images start small it increases.
Giving is not always giving money. Sometimes it is giving your time or talent. Your giving growth begins when you teach your grandchild to give the skill they have learned to another child.
Most importantly you have figured out how to make your grandchildren into supreme savers and make the world a better place.
Conclusion
We start by explaining the importance of teaching the supreme saving strategies for grandchildren. We include the possible learning needs of young grandchildren, and give examples of how they may differ from those of a teen. Then, we discussed develop a wage scale for chores, and how grandparent determines the pay. Next, we explain the importance of finding the right savings facility to grow a passive income. After that, we changed our focus from the young child to the teenager. For the teenager, we talked about using scenarios that teach them to budget when they spend. We conclude by echoing the importance of sticking it out and giving to help someone else.