3 Ways to Teach Kids About Saving Money

Saving money is one of the most important skills for adults to have, but is one that many struggles with. The earlier children have an understanding of the value of money, the stronger their beliefs about the importance of saving will be when they enter the workforce as a teen or adults. As a parent, you are your child’s first and most important teacher, and your attitude about money and spending it wisely (or not) will likely affect their own spending habits down the road. 

Take the time to talk to your child about the importance of spending and saving money, and be intentional about the way you show your own spending habits to your child. Just as you might participate in training from the Health & Safety Institute in the workplace, your child should participate in educational conversations regarding money at home. 

 

Here are 3 effective ways to begin teaching your child about the importance of saving money. 

  • Let Them Earn Their Own Money

Giving your child their own money will force them to either save it or learn to budget it in order to buy things they want, both of which are beneficial and valuable lessons for any child to learn. Allowing your child to earn an allowance or paying them a small amount of money to do extra chores or tasks around the house is a great way to get them started in managing their own money. 

  • Let Them Save For Big Items

If your child mentions a more expensive item like a toy or a game that they want, you can teach them about saving money by either helping them save up their allowance or speaking with them about opting to save money on other things in order to afford their big item. For example, if they ask to get ice cream after school, you could let them know that doing so would require you to spend money that could otherwise be saved up to buy the big toy they’ve been wanting. 

  • Offer to Match Savings

To encourage your child to save their money instead of spending it freely, offer to match their savings especially when they have their eyes on a bigger or more expensive item discussed above. For example, if your child has their eyes on a video game that costs $60, tell them that once they save $30, you will give them the other half. This will make their initial spending goals seem more obtainable and will encourage them to save by helping them see the benefits of doing so much sooner.

Putting your child in charge of their own money and teaching them how to save it will be highly beneficial for them in the future. The sooner you can get started in teaching your kids to save, the more likely they will have a strong foundation of understanding the value of a dollar and have a good idea of how to save once they enter the workforce as an adult.

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