How To Teach Kids To Save Money

Apart from the obvious what other real benefits do children gain from learning to save money?

A truly wonderful lifeskill that you could teach your child is the important skill of how to save money. Naturally, though, this may be somewhat of a difficult and challenging skill to teach children.

Surveys have shown that a great percentage of families live pay check to pay check so teaching this skill to children at a young age could prove tremendously valuable.

In the current climate there are very good reasons as to why people may live pay check to pay check but teaching children the skill of saving money is something that we feel all parents should strive for. Piggy Bank For Kids

Teaching and nurturing children about what is important and what is not important can easily protect them against unnecessary spending and help them to really understand the real value of money.

We have some super helpful tips when it comes to teaching children this all important lifeskill.

Essentials Vs Wants

When teaching your child about the importance of saving money ask them what they think are things in life that are really essential and what things are those that they just want.

Explain to your child that things in life that are essential are things like your home, a roof over your head, food to eat, clothes to wear, education and your health etc.

Then point out that wants are the other bits, like expensive clothing, expensive gadgets, luxury holidays and dining out etc, so that your child can start to grasp what is a essential and what is a want. Piggy Bank Money Box

Walk then round your home and ask them to point out what in their mind is a necessity and what is a want, in other words what things you really need in the home and what things you can really do without and would not miss out on if they were not there. 

Allow Them To Earn Money

In a survey two thirds of parents allowed their children to earn money by doing jobs around the home. This could be a good way to allow young children to learn about taking responsibility whilst earning money. In doing so, not only will they be able to earn money, but they will also be able to take responsibility and learn how to spend their hard earned cash.

Setting Saving Goals

Simply telling children to save money has shown to be quite pointless but by helping to define specific saving goals can be far more motivational.

Explaining to children how to save for something that they want, how much they would need to save and how long they would need to save for can be far more helpful for them to understand how saving money actually works and its benefits for them.

Where To Put Their Money

Once you have explained to your children the benefits of saving you will need to find a way how they will be able to save.

Younger children will find it incredibly rewarding and enjoyable to actually handle real money and a very pleasurable way they can save money is in Piggy Banks. Touching, feeling and handling real actual money can be a really exciting for young children. Piggy Bank For Boys

On the other hand, more older children will find it equally rewarding by saving their money in a children's saving account or some other children's bank account. Putting money in and taking it out or using a bank card can be tremendously rewarding, enjoyable and pleasurable for older children, let alone taking responsibility of their own hard earned cash. 

Tracking Their Saving

Getting your child to track how much money they are saving and how regular they are saving itself can be a very good incentive for children to save money.

Setting small and manageable saving goals and keeping a track of these too can be a great learning curb for young children.

Monitoring Their Spending

Teaching children to learn and understand where their money is going can make them into better savers and give them more responsibility. They will be able to see first hand on what their actual money is being spent on.

A simple method can be to get them to write down where they are spending their money in a little notebook so they too can see where their money is going.

You can support your child by asking them if they would like to change their spending habits in order to save more money should they wish to set different saving goals. Piggy Bank Meaning

Support your child and guide them but so allow them to make their own independent saving and spending decisions as this will help them in the future.

Offer Them Incentives

Another super way of encouraging children to save is to offer them financial incentives by saying, for example, that you will offer them a £20 or £50 bonus if they reach a particular saving milestone.

This will give them a fantastic reason to save in the first place knowing that they are going to get a free cash bonus.

Let Children Make Mistakes

When children make mistakes its natural to step in and put things right for them but sometimes allowing them to make mistakes and allowing them to learn from those mistakes can be a very good thing.

It is also worthwhile explaining to your children that mistakes are inevitable and helping and supporting them when they make these mistakes will also help them become more resilient.

Allowing them to learn from their mistakes early on in life can certainly be help them make better informed decisions in the future around money and savings.

Borrow Them Money With Interest

Getting your child to save money from a early age, setting goals and living within their means can teach children some very important skills early in life.

For example, if they do not have enough money saved up but still want to make a slightly larger purchase, you could offer to borrow your child the money but then make them pay they money back to you with interest charged.

This way they will again learn some valuable life skills and understand that paying for something with interest charged can be costly for them but the same thing will cost them far less if they are prepared to wait to make the purchase and be more patient and disciplined. Piggy Bank For Adults

Introducing the credit way to your child can also help in still in them from an early age that saving comes first and spending comes later.

Chat About Money

Regularly setting time aside to speak about money matters or any money concerns that you child may have can also be fruitful for your child to understand the importance around saving money.

Keeping the conversation going and discussing money matters with your children on a regular basis will help them tremendously later in life.

Set An Example Yourself

If you yourself are good at saving money and your child is able to see this then there is a far more of a chance that your child will become good at saving money too.

Agreeing to and saving jointly with your child for something that you both want can also be a very good incentive and learning curb for children too.

As kids yourself, were you ever given the chance to learn how to save money and if so at what age and how? More importantly, did it make you a better saver?

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