Chloe is a work from home mom and writer obsessed with all things budget-friendly. She not only spends time looking for the best bargains but also learning how to manage her family’s finances! When she’s not wrangling her four girls, she’s spending time trying new coffee huts and taking too many pictures of the Pacific Northwest’s mountains. Check out her budget-friendly tips, crafts, recipes, and more at Young Fun Mom!
Many parents set up a savings account for their children that they use for things like college, a car, or getting started when they enter the real world. This is a good habit to get into, but that savings account could be doing so much more for your kids! No matter what age they are, teach your kids healthy savings habits using these helpful tips.
Note: Check out this post on How to Help Your Teenagers Budget Their Money.
Introduce Your Kid to Their Account
For kids, tangibility is important. Let them see and learn about their savings account so they can turn an idea into something concrete. By introducing them to their bank account, you can teach your kids healthy savings habits. Not only is it a good idea to take them into the bank to see the tellers and how the process works but it’s also a good idea to show them their online account. Explore the online statements, teach them about the importance of always knowing their balance, and how to find out what their interest rates are.
Set Savings Goals
Goals provide excellent motivation for people of all ages. Most kids love the idea of competition and setting a goal gives them a chance to get competitive with themselves. For elementary-aged kids, a savings goal will likely have them getting creative about how to make more money to put into it. They’ll want to expand their chore list, give neighbors a hand, or even set up a lemonade stand. Not only will this foster a sense of monetary responsibility but it will also encourage entrepreneurial spirit.
Talk About Money Often
In society, we’re often taught that money is a taboo subject. It’s something that doesn’t usually come up when we’re having casual conversations and this can carry over into conversations with your kids. It can be easy to shy away from talking about money with your kids but it’s one of the easiest ways to teach your kids healthy savings habits. Don’t just talk to your kids about the importance of a job or things like interest rates. Instead, sit down with them and go over your salary, how you budget it, and how your own savings account has helped the family. All these things can be uncomfortable and leave you feeling vulnerable, but they are essential if you want your kids to be financially fluent.
It’s Never Too Late
Any time is a great time to start teaching your kids about the importance of saving money! While creating a strong foundation is a great choice for younger kids, you can still do it even if you have pre-teens and teens! Don’t think that because you didn’t start ‘em young that they’re a lost cause. Even teens (especially those with first-time jobs) will be receptive to learning about savings. The key with older kids is to show them how they will benefit in the long run. Show teens what their finances will look like in the future if they get into a good habit of saving now while they still have the parental bumper to fall back on!
Teach the Value
Kids aren’t born knowing the value of money. As adults, it can be hard to think of a time when we didn’t care about what things are worth, but the value is confusing for kids. By teaching them the value of things, you will be able to improve their sense of saving money. For kids, a $20 odd job can make them feel like they’re the wealthiest person, but it’s important to show them how far that money would go. They may be more apt to save it instead of going on a dollar store shopping spree! Since kids can be so visual, it’s important to give them something tangible they can see.
Do Some Math
Your kids are already doing math in school, expand on it! Sit down and teach your kids about interest rates and what they mean for different things. Make sure you teach them the difference between looking at these rates for things like loans and things like savings accounts. Since interest rates have the same name, it can be confusing! The simplest way to do this is by focusing on wanting a higher rate for savings and a lower rate for loans. Simplify it and then do some math with your kids! Show them how a higher savings interest rate will help them grow their savings account and that it’s like getting free money.
No matter what your savings goals look like as a family, it’s important to always include your kids in saving for the future. Teach your kids healthy savings habits now so that they’ll be able to be more financially stable in the future! Also – don’t hesitate to grab this savings tracker to keep you all on the path to financial success.
