Five ways to teach your kiddos to save
April 20, 2018
Attention all parents out there! In honor of "Teach Children to Save Day," we're bringing you five quick tips to teach your kiddos about saving money. Children who learn about money and saving at an early age grow up to be good budgeters and money managers. No longer will you have to worry about your child sleeping on your couch at age 35 because he or she couldn't pay the rent. So read and learn below!
Talk openly about money around your kids
When you're discussing bills, budget, goals, and whether or not you can afford that vacation, do so around your children. They will learn just by listening to you and will see that you're trying to make smart choices when it comes to money. Encourage them to ask questions, and be prepared to answer them – even if they're hard!
Teach them the difference between "needs" and "wants"
You can teach your kids about saving by providing choices and limits. They learn that money has power, and they must evaluate their needs before their wants. When it's time for a new toothbrush, give them a few dollars to spend and explain to them why the toothbrush comes before the candy in the checkout line. This can lead to conversations about passing up the wants to save money for their needs.
Set up a chore chart and give them an allowance
A chore chart with an allowance instills a sense of responsibility. For the little bitty ones, you can use play money that they can spend through you. Make sure they are saving a portion each week. You can even use the "three jars method" – one for saving, one for spending, and one for giving. This is a visual representation of different priorities. You can print a picture of what they are saving for and tape it to the jar, but don't be surprised if they decide they don't really need the item later!
Be an example
You're the most influential role model in your children's lives. You can show them what it's like to pay your bills on time and to be a conscious spender and saver. Talk to them when you're out shopping about why you chose one item over another. If you keep a budget, you might consider a savings sheet for each child so they can keep track of how much money is in their savings. Then they can update it and track their progress.
Open a savings account for each child
This is the best way to teach a child to save. Empty their piggy bank regularly and take them to your bank to make the deposit. The prize waiting for them at the bank will be even more incentive for them to save their money for a rainy day. If you need a savings account for your child, check out our Moola Moola account for children 13 and under. It only takes $1.00 to open the account and we have prizes for each deposit and parties throughout the year.
As your children learn the importance of saving, they are learning life-long skills. We're here to help however we can, and hope to see you all at our Moola Moola events in the future!
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