Teach kids to save money
Your kids will learn about saving money from watching what you do.
If you’d like your child to manage money effectively, you’ll need to offer them advice about how to become a successful saver.
One of the best ways to teach children about saving is to encourage them to set aside a portion of their pocket money each week for future use.
To motivate your kids to save, ask them to make a list of the things they'd like to buy.
TIP:For little kids, suggest they draw a picture of the item that they’re saving up for or they can cut one out of a magazine.
And there will be long-term goals – like saving for a school camp, a trampoline or a guitar – which can take a year or longer to reach.
Find out how much the item costs and make sure it’s a realistic savings goal.
An 8-year-old who’s trying to save for a million dollar car will lose interest in the process!
You can draw up a simple savings plan which will help them to save money to buy what they want.
Help your kids work out an amount of pocket money to aside each week and how long it’ll take them to reach their savings goal.
Saving dollars and cents for a short term goal
TIP:Put a chart on the fridge to remind the kids of their goal, how much money they need to save and how close they are to reaching that amount. It'll help to keep them focused on saving when they're tempted to splurge on a block of chocolate instead!
You can keep the money in a clear container so your kids can see the amount is getting bigger each week. They might like to count it regularly, too!
Once the savings goal is reached, take your kids shopping to get the item they've saved up to buy. Let them handover the money to pay for it.
Congratulate them on becoming a successful saver!
Saving dollars and cents for the future
- Opening a bank account for your kids is one of the best ways to help them learn about saving for the future.
- You can insist a set amount of your kid's pocket money is regularly deposited into a savings account. Or, let them decide how much to bank.
- At the end of the month, visit the bank with your kids to deposit the money into the account.
- To encourage saving you can teach older kids about earning interest on the money that’s in a savings account.
- Put simply, the more money your kids save, the more interest they'll earn.
TIP:Check the account balance regularly so your kids can see the amount of money they've save gradually getting bigger!
Find more related articles and information on kids and money
- How to choose a savings account for your kids
- Kids donating to charity
- Teach kids about borrowing money
- Teach kids about money
- Teach kids how to spend money