We all want our kids to inherit strong character and good habits from us. Teaching kids about saving money is one character building habit we can pass on to our kids. Lead them and teach them how to start saving and spending wisely in a creative and exciting way.
Your child is exactly the right age to start saving, because starting at any age is better than never getting started at all. Children as young as three can learn the value of saving. Adjusting your methods for children of school age and older might be necessary but teaching by example will work for all ages. As a mom to young children I have found that giving kids examples and rewarding them for their success leads to motivation. Continuing conversations about the need for savings will instill the value.
Your child is exactly the right age to start saving, because starting at any age is better than never getting started at all. Children as young as three can learn the value of saving. Adjusting your methods for children of school age and older might be necessary but teaching by example will work for all ages. As a mom to young children I have found that giving kids examples and rewarding them for their success leads to motivation. Continuing conversations about the need for savings will instill the value.
Start creating saving habits by getting a cleaned out jar, milk jug, or any container can work for saving coins and paper money. Stores sell money jars that keep a running count of your deposited coins and there are fancy ceramic piggy banks that come in more designs than just pigs too. Any type container will work.
With younger kids you can allow them to put the spare change from your purse or car into a penny bank. Have them make a savings goal chart, start off with a goal they can reach quickly and celebrate with them when they have made it to that goal. Keep the chart near the penny bank and raise the future goals as they reach each one. Remember to make a big deal about their success and discuss the importance of saving with them as they grow. I have a young daughter who enjoys sorting and keeping like things together. She has four coin jars she uses to keep all her money separated so she enjoys sorting them and saving them. Find what will excite your child, maybe sorting, or decorating their jar or milk jug with stickers, make saving fun and personalize it.
Older kids sometimes get money from Birthdays or other holidays, when they get a visit from the tooth fairy or for an allowance. To teach older kids the value of saving money you could set up two penny banks. One would be used for savings and one used for spending. Create a division of the funds between savings and spending that suits you, maybe you'd like a 50/50 ratio or a 60/40 ratio. The more money saved the better. Encourage them with incentives, bring them to the bank once a month so they can deposit their savings in an account. Giving older kids ownership and responsibility will bring out desire. When they reach a predetermined savings goal treat them to a reward they would enjoy, a movie, skate night, sleepover, a video game or app they want. Make it something special that will leave an impression.
Maybe you're planning a summer vacation or need to purchase a family vehicle, large purchases are a good opportunity to teach your child the importance of saving for the future. Most of us can't buy a car without financing so this is also an opportunity to lightly discuss the costs of getting a loan. We want kids to be kids and not deal with what can be the stress of money so giving them age appropriate information is key. Saving money for kids should be fun and they will be learning that stable foundation from you.
*Spark interest in saving by giving kids a reward for reaching their savings goals
*Give kids something exciting to work towards, help them set the goal and deposit the money
*Keep them interested with ongoing communication that relates to their life experience
With younger kids you can allow them to put the spare change from your purse or car into a penny bank. Have them make a savings goal chart, start off with a goal they can reach quickly and celebrate with them when they have made it to that goal. Keep the chart near the penny bank and raise the future goals as they reach each one. Remember to make a big deal about their success and discuss the importance of saving with them as they grow. I have a young daughter who enjoys sorting and keeping like things together. She has four coin jars she uses to keep all her money separated so she enjoys sorting them and saving them. Find what will excite your child, maybe sorting, or decorating their jar or milk jug with stickers, make saving fun and personalize it.
Older kids sometimes get money from Birthdays or other holidays, when they get a visit from the tooth fairy or for an allowance. To teach older kids the value of saving money you could set up two penny banks. One would be used for savings and one used for spending. Create a division of the funds between savings and spending that suits you, maybe you'd like a 50/50 ratio or a 60/40 ratio. The more money saved the better. Encourage them with incentives, bring them to the bank once a month so they can deposit their savings in an account. Giving older kids ownership and responsibility will bring out desire. When they reach a predetermined savings goal treat them to a reward they would enjoy, a movie, skate night, sleepover, a video game or app they want. Make it something special that will leave an impression.
Maybe you're planning a summer vacation or need to purchase a family vehicle, large purchases are a good opportunity to teach your child the importance of saving for the future. Most of us can't buy a car without financing so this is also an opportunity to lightly discuss the costs of getting a loan. We want kids to be kids and not deal with what can be the stress of money so giving them age appropriate information is key. Saving money for kids should be fun and they will be learning that stable foundation from you.
*Spark interest in saving by giving kids a reward for reaching their savings goals
*Give kids something exciting to work towards, help them set the goal and deposit the money
*Keep them interested with ongoing communication that relates to their life experience
