How to Teach Your Kids to Save Money
Be Positive and Encourage Your Children to Save Money
There are many theories on how to teach your kids to save their money. We think the best idea is to teach them by example. In other words, show them the ways that you save and discuss with them the benefits of joys of saving. It may be hard for them to understand at their age, but chances are it will pay off big time for them in the future.
Teach Your Kids How to Save Money:
- The best way to get your children interested in saving their money is to pay lots of attention to it and give them encouragement. We keep a piggy bank in each child's room and they are always excited to add money to it.
- Always be positive about saving and make your child feel proud each time they choose to save.
- When birthday and holiday gifts come, show your children the money they've received and then work out a plan to save some or most of the money. Start a savings account or a stock account in their name and deposit the money there. Log into the account and show your children how much they've saved.
- Physically take them to the bank and let them deposit money in their account. The hands on approach will make a big impact on the way they think of saving.
- When your child wants to buy something, make them handle the money so that they fully understand the costs associated with spending.
- Teach your child that saving today means they'll have money to spend in the future for something they really want or need. Have them think of something they want to buy in the future (like a bike or even a car) and let them visualize their savings as something they really want.
- Encourage your kids to save by matching their savings. Match them dollar for dollar to give them encouragement. Another encouragement would be to pay them interest (since the banks rates are so low) on a monthly basis, and then show them how their savings have grown.
- Encourage your children to earn extra money. Offer to pay for some one-time household chores or offer an allowance, then encourage them to save the money.
- Encourage your children (if they are old enough) to look for ways to earn money like mowing lawns, babysitting or even a lemonade stand. We have our kids pick out toys they don't use and sell them on craigslist. We then put the money in their savings account. These steps teach them the value of money and early business skills.
- When you make buy or save decisions, share them with your child so that they learn from your decisions. You'll be surprised at how willing and even excited they will become over saving and earning money.
- It's never too early to learn how to invest. Buy a few shares of stock in a company like Disney, Apple or Google that your child is interested in. Let them see how their account grows over time. Learning about stocks at an early age and letting them make decisions is an invaluable asset for their future.
- Find other recommended money saving ideas.
See Also: Ways to Save Money