Teaching Kids to Save Money
It is never too early to start preparing your kids about saving. Many kids think that you go into the store, pick your stuff, bag it at the cashier then head home. Here are some helpful hints for teaching your children the value of money and how to save for things they want.
- Start with a small savings goal for something such as a toy or fun activity. Use this as a “Stepping Stone” to learn how to earn and save money. Make goals realistic and don’t discourage saving by picking a toy/activity that is too expensive or takes too long to save toward. Reaching the goal shouldn’t be easy, but it should be fun.
- Use a jar to store his/her money and have fun decorating the jar. Create a poster board savings chart and use stickers or color in squares to track progress.
- A weekly allowance or earning opportunities. Extra jobs around the house can help add dollars to their new savings jar.
- Have casual conversations about money. Teach them to think about their spending habits.
- Once the goal is met, celebrate by helping them buy their toy or activity. Continue the conversation and encourage them to start saving again.
- Since children learn from their parents, be a role model. Spend wisely and live within your means in front of your children.
- Talk about giving. It is essential for to kids learn the importance of giving back to others. Consider making three jars – one for saving, one for spending, and one with charity donations.
- Open a bank account. Many banks offer children or student checking accounts with no fees. Offer to match any money they save to encourage lifelong savings habits.
- Create a budget. Kids should know all about budgets and how to stick to one as they grow up.
Teaching kids about money is a lifetime lesson. Demonstrate sound financial decision making but don’t prescribe all of their business decision. Let them make mistakes early and teach them the lessons learned. With useful guidance and smart choices, your kids are on their way to financial success. Begin by opening a Stepping Stones savings account with North American Savings Bank! Give us a call at 800-677-6272.