How to teach kids about saving money.
As parents, we want our children to have a secure and prosperous future. One of the essential skills for achieving financial success is the concept of saving money. Saving money is about making wise choices and planning for the future. It is an important life skill and it’s never too early to start. Even young children can understand the basics of saving, such as putting money away for a rainy day or for a special purchase. It can also help to reach financial goals.
Tips on how to teach kids about SAVING money
Start early. The earlier you start talking to your kids about money, the better. Even young children can understand the basics of saving money.
Explain what saving means. Simply put, saving is putting money aside for future use. This can be for something they want to buy in the future or for emergencies. Emphasize that saving is about being responsible and planning ahead.
Make it fun. Turn this teaching into a game or activity. For ideas, check out the ACTION ITEMS below.
Set a savings goal. Setting a specific goal can help for motivation. Setting goals helps children understand the importance of saving and gives them a sense of accomplishment when they reach their goal.
Be a good role model. If you want your kids to be responsible with money, it's important to model that behavior yourself and lead by example. Show them how you save money and talk to them about the importance of saving, and how it has helped you achieve your own financial goals.
Be patient. It takes time for kids to learn about money. Don't get discouraged if they don't understand everything right away. Just keep talking to them and answering their questions.
By teaching your kids about saving money, you're giving them a valuable life skill that will help them set and reach financial goals in the future. This can help lead to a more financially secure life. By explaining the concept of saving, making it fun, setting savings goals, encouraging wise spending choices, and leading by example, we can instill a sense of responsibility and planning for the future.
ACTIONABLE ITEMS
Tips for talking to your kids about SAVING
It involves waiting. Explain that you have to wait until you have enough to buy something.
ACTION: Give examples of waiting, like waiting for a birthday party or waiting for a trip. Demonstrate patience as you wait.
ACTION: Point out waiting when you are in line at the store to purchase something or at an amusement park to go on a ride. Demonstrate patience as you wait.
Make it a habit.
ACTION: Practice putting aside a portion of all money received. Make your child do this too. Have your child put aside their spare change each day.
Make it visual.
ACTION: Show money being saved in a piggy bank or savings jar so they can see the money set aside and see the amount increasing as you get close to a goal
ACTION: Make a chart and track his/her progress to show how savings can grow over time.
Set a savings goal:
ACTION: Set a specific goal – it could be a small goal, like saving up for a toy or a bigger goal like saving for an activity at a family vacation.
Set a good example. Children learn from observing parents.
ACTION: Show your child the ways you also save money.
ACTION: Show your child a purchase that you had to save up for.
Discuss different ways to save.
ACTION: Explain that NOT spending money is also saving.
ACTION: Buying something on SALE is also saving.
ACTION: Compare prices at the grocery store and explain that purchasing the cheaper item is a way to save.
