5 Ways Your Kids Will Enjoy Saving
When it comes to teaching your kids about saving money, the earlier you start the easier it will be for them to learn. Kids who learn about saving when they are young usually have an easier time reaching their financial goals when they are older. Here are five fun ways to teach your kids about saving money.
- Allow them to take charge (with strings). Forcing your kids to save isn’t going to help them enjoy the process. Give them some power over their savings so they can make their own choices. Offer them some options on how they can save and what they can save for, then let them choose for themselves. For example, my kids have saved for big Lego sets, games for their gaming systems and Christmas gifts. Soon, my oldest will be saving for his first car (eek!).
- Let them make mistakes. We want our kids to succeed in life. It’s difficult (if not impossible) to sit back and watch your child make a mistake and not jump in and help him/her fix it. However, it will be better for both of you if just sit back and take a deep breath or two….or 14. Missing out on a game or activity once in a while when they are young is an easier loss than having them struggle to save for their first home or business. I can’t tell you how incredibly frustrating it is to watch one of my kids (aka “the spender”) to make mistakes, but it is necessary. He is making great strides and learning the value of money, but it’s still frustrating. It is hard being a parent sometimes, but I know I am raising men, not boys.
- Match their savings. Help your child set a savings goal and when they reach it, reward them by matching some or all of their balance. If they save $50, match the savings or a percentage of the savings. They will be excited about the prospect of having more money and reaching their goal faster. We have matched our boys’ Christmas savings for their brothers for the last few years. Each year the gifts get bigger, so they have to save more. Sometimes, my husband and I tell them we will only match a certain percentage of what they save rather than the entire amount. They often have a gift already in mind, so they save even harder.
- Encourage different goals for money. Teach your child about budgeting in a visual way. Have them start three piggy banks or jars and label them “saving,” “spending” and “tithe.” When they receive cash from an allowance or birthday gift, urge them to divide it equally into the three jars or according to the agreements you have made. It won’t take long before they see the money in their “saving” jar grow. When my kids were little, I used THIS house.
- Make savings fun with games. Let them learn about saving money by playing fun games. Classic board games like Monopoly or The Game of Life will teach them basic financial principles. You can also check out websites like Kids.gov to find age appropriate games and videos about saving and budgeting.
Teaching your kids how to save can be fun. Showing them ways they can manage their money will set them up for financial success in their adult years.
To help you out, I have a FREE Money Tracker for Kids!