Five Ways To Teach Your Kids About Saving Money

14 Jan Five Ways To Teach Your Kids About Saving Money

Saving money is one of the most important aspects of building wealth and having a secure financial foundation. Yet many of us have learned the importance of saving money through trial and error, and more importantly, experience, courtesy of real money casino in Australia.

In school, we aren’t taught about the importance of saving and many of us find that as adults, we have to fend for ourselves.

But there are ways to empower the next generation, and that starts by teaching children the importance of saving from a young age. If you are a parent, here are four ways to teach your children about saving money, curated by best online slots real money usa.

START WITH A PIGGY BANK

A piggy bank can be a great way to teach your kids the importance of saving while giving them an easy way to do it.

Tell your kids that the goal is to fill up the piggy bank with dollars and coins until there is no room.

Illustrate that the piggy bank is for saving money for the future and that the more they save, the more their money will grow. Here is how Kevin O’Leary of Shark Tank used a piggy bank to explain compound interest to his kids.

OPEN UP A BANK ACCOUNT

Once the piggy bank is full, take your child to the bank to open up a savings account for them. Have them count how much money is going to be deposited, so they can have a physical understanding of how much money they have. Show them the final number and reinforce the idea of interest.

It can provide a great source of motivation for your kids if they understand that their money will grow over time as long as they don’t touch it.

USE SAVINGS JARS

When your kids want the latest and greatest toy or a new action figure, let them know they will have to save up for it.

Give them a jar for each of their desired purchases and offer them a small allowance each week in a denomination that encourages savings.

For example, if you give your child five dollars a week, give it to them in one-dollar bills. They can save all their cash for one purchase, or they can contribute to different “jars” for various savings goals.

To encourage saving up for their short-term goals, put a picture of their desired toy or item on the jar, so they have a visual reminder of what they are working towards.

LEAD BY EXAMPLE

Children learn by example, so the best way to teach your child about saving money is to save money yourself. Have your jar of money that you put funds in regularly.

When you’re out shopping, show your children how to discern between various prices and explain why buying one item makes better sense than another.

Reiterate the message that every time you get paid, you save a portion of your check to help prepare for the future.

Teach your kids about why and how you are saving for their college education. If you do not yet have a college savings account, take a moment to understand Our Five Steps to an A+ College Plan.

CONCLUSION

Teaching kids how to save money may seem like a tough task. It has even been said that parents are more likely to talk to their children about sex than about money. But using these tips, you can make your child’s understanding of money fun and accessible. It’s an investment in knowledge which truly pays the best interest.