There are many creative ways to educate your children on how to save money. In addition to opening a savings account for your child, the following tips and ideas can guide you as you show them how to save and be responsible with their money.
Play The Match Game
Tell your children that for every dollar they put in savings, you’ll match their contribution. Start out when they’re young by matching 100% - if that’s reasonable for you. When they get older, you can adjust to a match of 25% or 50%. This will provide some positive reinforcement and encourage them to save!
Teach Them About Goal Setting
Your kids will probably want the latest and greatest gaming device, or maybe a new skateboard. You can create a visual indicator – perhaps a thermometer or another measurement tool, and hang it on the refrigerator. As they save their money, color in the thermometer. It’ll be a great visual representation of their progression! You can also display a picture of the item they are saving for to remind them what all of the hard work is going towards.
Reward Them For Their Efforts
Young children might have a hard time understanding the concept of saving for the future. If you choose to reward them with more tangible items, such as stickers, toys and special treats, you might help put savings into perspective.
Practice What You Preach (Save Money In Front of Your Children)
Keep your own piggy bank or deposit money in the bank when you are with your children. Explain what you are saving for and your children will mimic your behavior. While it’s wonderful to teach your children about saving, always remember to praise them for their efforts to save, regardless of the amount they choose to put aside. Encourage them to continue saving and as always, the best lesson is to lead by example!
Article submitted by Autumn