Teach Children How to Save

Picking the right time to talk to your child about money and saving can be tricky. Too soon and they won’t comprehend, too late and they are more interested in what money can buy them right now, versus saving some for later. A good time to begin is when a child expresses some curiosity about money and catches on to the fact that in order to get those groceries in the cart or get that toy that they asked for, you have to pay money for it.

Many parents chose not to talk about money around their children, but that is exactly what you shouldn’t do. They need to learn that money is an important part of life and living and that you need to be cautious spending it, and always try to save some of what you earn. They don’t need to be told your income and who you owe money to, but they should be aware of what goals you have in saving money.

Let them know you are saving money for a new TV, or summer vacation, or retirement, or a new car. Let them be part of the process so they understand goals and achieving them, and that it isn’t always easy.

TIPS FOR TEACHING CHILDREN TO SAVE

1. Establish an allowance. Let the children know that they can’t get free stuff and they will have chores to do and if they do them, they will be rewarded by being paid. Base the pay on their age and ability to do chores. Let them know you expect them to save a certain portion of their allowance and help them set a goal as to what they are saving for. Let them put the money they are saving into a glass jar or a glass piggy bank so they can see it grow.
2. Take a field trip to the bank. After their savings has grown, take them to the bank and ask for a tour. Explain what each of the people do there. Open a savings account for your child. When they receive their first statement go over it with them. Teach them what words like withdrawal, deposit, teller, interest, budget and checking account mean.
3. Sometimes children receive monetary gifts for birthdays and other holidays. Let them spend part on anything they want, but also save a portion.
4. Let your children see you saving money and talk to them about what it is for. They’ll see you setting goals and working to meet them and they will mimic your efforts.
5. Always praise children for saving and reward them from time to time with things like stickers, or a colouring book, or a special outing. If your budget permits, match their savings so they can see it grow faster.