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Teaching Your Child How To Save

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Ilori Titilayo

 

Teaching your child about saving money from an early age will set them up to be able to achieve some of the larger goals they will have later in life, including buying things like cars and houses or saving for things like vacation or retirement.

 

Talk about money to your children. While you may not want to discuss your salary in front of your children, you may want to let them hear you discuss your financial plans and arrangement you’re making for retirement, for example.

 

 

 

This could simply be having a conversation with your spouse while your children are in the room. In this way, your children can understand that savings is a lifelong endeavour.

 

Use different jars and saving boxes

 

When giving a child allowance, make sure that you are breaking out the total into smaller bills or coins. This will encourage them to divvy it out ( some for savings, some for spending etc)

Have your child draw pictures of what he or she wants. You may also want to help your child understand that some items will take longer than others to save for.

 

For example, the short term savings container might have a picture of a specific toy, while the longer term container might have a picture of a trip somewhere.

 

Offer rewards for saving money. Consider rewarding your child for saving  his/her money. You can offer prizes to your children.

 

If your child doesn’t spend any money for a certain amount of time, provide a small reward or treat.

 

Set a good example

 

One of the best thing you can do is let your child see that you save money too. Put money in a jar while your child is watching and tell him or her it’s your saving jar.

 

This will show your child that saving is “normal” plus, since most young children want to be like  parent, seeing you do it will provides them with money lesson that further inspire them to save.

 

Take him to the bank

 

For children age 10 and abovd. Consider taking them to the bank and involving them in the process of opening up a checking or savings account.

 

This will give you the opportunity to teach them how to balance their checkbook and will wean them off of having to see the physical cash in order to make good decisions.

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