Children need to learn how to save at an early age. It might seem like teaching then this process will take forever, but it is possible. Take a look at these 10 ways to encourage your child to save money.
8 Ways to Encourage Kids to Save Money
Find a video that your child will watch and show them this way. Some children will never “get it” until you find a way to reach them. There are some incredible videos out there. For starters, see what YouTube has to offer.
Show your child that there are rewards to saving money. One of those rewards is actually saving up to purchase something large. Another reward could be that you give them a certain dollar amount for every dollar they save. for example: you can give $10 for every 100 dollars they save. Remember, kids are kids and they deserve to be rewarded for saving their money properly.
#3. Needs vs. Wants
There is going to come a time when your child wants to buy something they don’t need. This is a great way to teach your child the importance of saving. Of course, it’s also vital to talk about purchasing something when you need it. Wants are always told to be put on our Wish Lists for birthdays & Christmas.
#4. Talk About It
So many people have money trouble and do not talk to their kids about saving money. This is because most adults can’t even save money. Talk to your child about the value of savings and this will do wonders for their life.
#5. Fake Money
If your child is really little, then teaching them to save with fake money is brilliant. You can eventually replace the fake money with real money, when the child is ready to spend it. Every time they do something worthy (chores), then give them the money and allow them to put it in their savings.
#6. Feed The Pigs
I know your asking what? When money goes into our piggy banks we call it feeding the pigs. Everyone in the family knows that we feed our pigs and then the boys get to take it to the bank. This is a good exercise to have as we discuss what each coin is and what it’s worth. Once our pigs are stuffed we let the boys take it into the bank and see how the money is deposited. Since the whole family knows about feeding the pigs when anyone comes to visit they all round up their change and bring it down or we will find a couple dollars in change wrapped in gifts. Every little bit helps build those accounts!
#7. Setting an Example
If you are out blowing your money and not saving, then your child will realize it. They learn by watching. Make it a point to set a better example anytime you are spending or saving. We also make a point that when our children ask for things or want things we tell them to put it on their wish list for birthdays and Christmas. My aunt was recently in town and is still raving how she took them in a toy aisle and they asked for nothing. They have learned it goes on a list and we don’t purchase something just because we are in a store.
#8. No Plastic
It’s important for kids to learn how to save money and they can’t do that with plastic. Always show your child how to save by using cash. Pay them in cash and then show them how to take it to the bank and put that cash into the bank. They need to know that real money takes hard work. I do want to point out here that this is not something my husband and I do as we earn free credit card points and then pay the bill off monthly. I do think it is important though for children to learn about the concept of money and how it takes money to purchase everything not just a card, we do this within step #6.
Helping your children learn to save money is a task on its own, but an important one. Without mom and dad teaching them how to save, they may never truly grasp it. Don’t forget children turn into adults and will have to make their own money decisions some day. Raise them up right.