When you are a kid, money can seem like a really huge deal. Any amount of money that a child gets can make them feel very important, and the first thing they want to do is go out and spend their money. That is exactly what consumer America encourages them to do in fact. In this day and age however, it might be a better idea for a child to save the money they get instead of going out to spend it. This is something we all need to learn how to do unless we want to live paycheck to paycheck. Here are some tips on teaching kids how to save money.
Try a money jar: Nothing can get your kid more excited about saving money than a money jar because it provides a visual reminder of their progress. Heck I still have a money jar and so do my parents! Try using a large glass Ball jar, and store it in a place where it is not likely to be broken, right in their room on a shelf or on their dresser perhaps. Want to make things even more exciting for your child? To really encourage your child to fill that jar with coins, let your child decorate that jar with colors or stickers or paint it any way they want!
Make a chart: Maybe you can turn saving money into a reward system! The more the kids fill that jar with coins, and with their savings they can earn special prizes. Another use for that chart is to help them save for a goal like a movie or toy they may want. When you create your chart, paste or tape a picture of whatever they want right at the top of the chart, so they will see them getting closer to that goal.
Children learn by example: Experts say that children learn things by the example they see from their parents. Do you have a change jar that you keep your loose change in? If you want your kids to start saving money, then you need to create a change jar or some of other visual way to measure savings of your own so you can set a good example.
Play the match game: To really encourage your children to save, try matching them dollar for dollar. Not only will your child be able to reach their savings goal. But you will really get them excited about starting to save for a new goal.
Use a banking program like ‘S’ is for Savings: This particular program involves a children’s savings account designed to give kids a financial foundation and it is modeled after their popular virtual wallet program. It helps kids practice saving, sharing, and spending. They literally drag and drop their money into different virtual jars showing how they want to divide it up. Parents can automatically deposit money into their kids account, like allowance. I like this concept because it not only teaches them to save it also teaches them how to manage a bank account.
Do you want your child to understand the importance of saving money? Teaching your kids to save money is important because it can show them what it can get them. You will be teaching your child an important lesson that they will take with them for the rest of their lives.
Disclosure: I was compensated by PNC for participating in this campaign. All thoughts and opinions are my own.
Monday, September 10th, 2012