Tips for Educating Your Children about Saving
Friday, May 10, 2019
Read Time: 2 mins
Teaching your kids to save money is an important part of parenting. Many people graduate from high school and college with no concept of how to save money. You can teach your children to save money at almost any age. Here are some tips to help:
Be careful about spoiling your children with toys and gifts and caving to their every demand. They should realize the importance of money and savings. Many parents require their children to earn rewards instead of getting things for free. If they have to earn something, they are more likely to appreciate its value.
Use jars to save.
A fun way to help your children save money is to use piggy banks or jars. They can also use envelopes to save their money and draw pictures on the outside of all the things they wish to spend the money on. Using clear jars will give them a visual of the money piling up.
Set an example.
Your kids learn from watching you. If they see you doing something, they’re more likely to do the same. The best way to teach your children about saving is through example.
Open an account.
Allow them to open a saving account with a financial institution. It will teach them to be responsible, as well as teach them about the importance of saving. Consider our Kids Klub account or a Teen Checking.
Teach them about credit.
Teaching your kids about loans and debt is important. Help them understand how loans and credit cards work and the importance of making payments on time. Explain the importance of keeping the balance on a credit card paid down and remind them to avoid “charging” more than they can afford to pay back.
Instead of an allowance, give them an allotment.
Instead of giving your children a monthly allowance, you could pay them in an allotment in return for doing chores. This will show them that money is not given to them, but rather earned. Money in exchange for mowing the lawn, doing the dishes, cleaning their room, doing the laundry, and other chores, will teach them that nothing comes free.
Talk to them.
Communicate the importance of saving money by speaking with your children and being an example. Show them what they can do with their savings. By helping them understand the importance of money, they will start taking responsibility for it from an early stage in their lives.
For additional resources check out our Financial Resources page.