Three Ways to Teach Kids About Children Saving Money
I began teaching my son about money when he started Pre-K. Many adults are flustered by the thought of finance, as young adults not knowing how to manage money. My goal was to teach very early on the concept of money.
One of the traditions in my family is to give the birthday child the equivalent of their age in money. Of course, the kids cannot wait to count what they received and then head to the mall to spend it as quickly as they received. My son was no exception. I began by reminding him that next week he might see something he wants more than the racing car he saw yesterday. In the end, children saving money is an important lesson – let’s read more…
Be the example.
When I would take my son to the bank, I would always show him that I too saved money by making a point of saying to the teller, “Put this amount in my savings and the balance in my checking account.” I remember my son saying to me one day, “Why do you save money?” I said, “So that we can take that great vacations.” I got the thumbs up sign.
Find Yourself a Money-Saving Jar – and Use It
Introduce clear plastic jars for your child to save their money. I started out with a piggy bank in the shape of a bank building. Whenever he put anything in it the next day, he wanted to empty it to see what was in it. Using the jar, he could see exactly what was in it and how much. Expanding on the clear jar method whenever he wanted to buy something special, we would start a new jar with the picture of the item he wanted to buy so he could save for it. It was so cute listening to him split any money he received with…1 to save and 1 for my toy.
Your money jar will come in handy if your school runs a holiday school boutique this winter. It allows children to buy mom and dad gifts to show their appreciation.
Set an Allowance
Give them an allowance. Age appropriate allowances is the best way I found to also teach kids about budgeting. I took care of school lunches and such. My son had to learn to budget his money for his incidentals. Like now, Pokemon was a big thing for my son so if he wanted to buy a pack of Pokemon cards then that was an allowance expense.
Children Saving Money: Lead Your Kids By Setting the Right Example
It will take time. It will be a challenge. In the long term, your child will grow up learning to be financially healthy. Remember, your child will follow your example so let them see you do the things you are telling them to do.