Teaching Your Child How to Save

As parents, we must teach our children how to go about being good citizens. We teach our children manners and how to behave as well as how to do basic things like tie their shoes and to be clean. As parents, we must also take time to teach our children to be smart with money. Children who learn how to save at an early age will be better off as adults, knowing to how to carefully spend money.

Children who have access to money, be it an allowance or birthday gift, often feel the money burning a hole in their pocket. The child will want to spend the money quickly and usually on something silly like candy or toys. Teaching a child the value of money and how it can be used will be beneficial in the long run. Read on to see just how you can teach your child how to handle money including saving it.

Start Early

When it comes to money it is best to teach your child early on the subject. As a parent, it’s crucial avoid giving in to your child’s every whim. Avoid buying your child something every time you go to the store. Think of it as a special treat when you do buy them something. And when your child asks for something, take it as an opportunity to start a conversation on money. Explain how you make money and how much the things they might want cost. Over the years, this information will sink in and your child will start thinking about the costs of everyday life on their own.

Work, Work, Work

Once your child reaches the age they can do chores, consider giving an allowance for work completed. Tell your child that once they earn a certain amount of money, say $10, then you will take them to the store. Once that money is earned, go shopping. Show your child what they can get for the money. In most instances, a child will realize that their money is not going to go very far. They may want something that costs more and realize they do not have enough money to buy it. Children will also begin to connect the hard work they complete with the amount of money they have in hand. Most kids do not want to blow the money they earn once they connect how hard it was to receive in the first place.

Saving

Once your child has grasped the basic concept of money, you are ready to teach them how to save. Talk about long term saving such as for a phone, laptop, or even a car. Create a savings account for your child and allow them to place money in the account, showing excitement as their savings continue to grow! Your child will be encouraged to save even more as the years go by, accruing a solid amount for the future. Starting small and working towards higher priced items will help your child learn how beneficial saving can be.

Help your children learn how to be responsible with their money. Teaching your kids about money not only prepares them for a successful future but also gives them a head start in good financial management.