Children are spenders. When kids are given an allowance or earn money by doing chores, most want to spend it right away. As they get older, of course, we can hope that they will start getting the hang of saving their money. But, we need to teach young children the value of saving money and making wise choices. Someday, they will need to have money for a home, apartment or car.
Most public schools do not include money management in learning. As adults we use the money management skills we learned as a child, so it is important to educate our children and equip them with financial skills. It is important for them to understand that not everything is disposable or replaceable and that there is value to the dollar.
Here are a couple ideas to teach children to save:
1. Children learn by example so save money in front of them. If they see you saving money toward something special, it will make an impact. Teach them that avoiding a $5 daily expenditure on junk food at the movies or ball field (pack snacks from home) can add up to a $25 or $30 dinner out for the family later in the week. Or, if you are looking toward a family vacation, let your children know about your own sacrifices you are making in order to save money. Give them a vacation jar to help them save up for the trip or for souvenirs. They’ll appreciate the trip much more if they are part of the saving process.
2. Open a savings account in their name. Many banks allow minimum balances and deposit amount. Having official bank books and bank statements can be great motivators.
3. Consider matching your child's savings like businesses do. For younger kids with smaller savings, a 100% match may be possible, as they get older and are earning money; a 50% or 25% match is a great motivator.
4. Encourage them to make lists and set goals. If they know what they’re saving toward, it’s much easier to hold onto money. The first time your child saves up for something big, it will be very rewarding to them. They will appreciated and enjoy the reward at the end of the saving process much more than they will if you just hand them what they ask for.
For more info see TuckerPatch