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. My boys know that we don’t buy items unless it’s on sale or we have a coupon for it. Now, every so often we may splurge on a really nice toy or game that’s not on sale (usually an item that rarely goes on sale). However, they still understand the importance of the waiting game- saving their money and learning how to be patience. Children are little sponges. They are watching your every move, even the way you spend and handle money. So it’s important that you raise them to be money savvy and financially smart.
Take a look at these 8 ways to encourage your child to save money.
8 Ways to Encourage Kids to Save Money
- Visual– 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.
- Rewards -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.
- 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.
- 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.
- 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.
- Clear Jar Piggy banks are so 1955. Clear jars are the way to save money now. For one, they are free in most cases, and secondly the child can see how much money they are saving overtime.
- 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.
- 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.
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.
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