How to Teach Young Children to Save Money
Saving money is one of the most important life lessons you can teach children. It’s the foundation for building a secure financial future and it’s never too early to teach young children this important lesson. It’s something they will carry with them throughout life.
Start talking to your child about saving money as soon as he understands what it is. Even toddlers can add money to the piggy bank and when they get older and more curious about money, explain why saving is important and the difference between needs and wants.
Here are a few tips to help teach young children to save money:
Give your kids an allowance for doing certain chores around the house. It teaches them that money is earned, not given.
Use different piggy banks to separate the money into at least three groups. One is a savings account for the future, one is the money you need to buy that special toy and one is for free spending and sharing with others.
Play games that teach kids the value of a dollar. Monopoly, Cashflow 101, Payday and The Game of Life are some of the most popular board games used to teach kids about money.
Allow your kids to watch when paying bills and answer their questions as you go. It’s also a good idea to take them with you grocery shopping. Watching you will help teach them good financial habits.
When possible, give children the freedom to make some financial decisions themselves. This will allow them to make and learn from their own mistakes when they’re young. This way, they won’t make the same mistakes when they’re older.
Teaching kids the value of a dollar when they’re young will help them learn the skills they need to have a secure financial future.