Learning to save money takes practice. By saving, you can teach your child to spend money on what’s important to them—whether that’s a new video game, a trip to the movies, a used car, or even a college education.
We’ve broken down tasks for different age group to get savings inspired. Let’s get them started today:
Open a Kids Savings Account at the credit union. Have them keep track of how much money they put in and take out. Ask them to create a certain goal so they are inspired to track their savings.
If they’re saving up for something special, like a new bike or toy, have them hang a picture of it on the wall. This will remind them of their savings goal every day until they reach it.
Have your child plan a family event, like a trip to the zoo or an afternoon at a waterpark. List all the things that will cost money—like tickets, food, and souvenirs. Let them create the budget, and encourage everyone to stick to it when the big day arrives.
Teach them how to prioritize their funds. Have them create a list of things they want to spend their money on. Then tell them to put the list in order, starting with the things they want the most. This will help them figure out what they really want to save up for.
Has your child considered taking on a part-time job? By earning their own money, they can start to reach for bigger goals. Ask them to pitch in for the extra data on their phone or help pay for the car they want. By making them responsible for some or of input, they will start to understand the value of the dollar.
If they begin to receive consistent money from a job, talk to them about opening a checking account at the credit union. Teach them how to use a debit card responsibly and track transactions. Those skills will come in handy when they leave home.
What advice do you wish you received as a child to make learning about savings easier? Incorporate your own knowledge of money and savings into your teachings. Let us know in the comments how you’ve been working with your child.