Tips on How to Teach Your Kids to Save Money
Most children are oblivious to the amount of money we actually need to spend on bills, and they only want to spend money on toys, eating out, going out, etc. Considering this, there is no way they could understand credit card processing services or merchant account services for that matter. We need to teach our children how to save money. When your child is young, start off by getting them a piggy bank or a jar where they can see the money beginning to grow. Try to make saving fun, for example; when you save ten dollars, you can spend five. This will show them how to save but not spend all the money they have saved.
As a toddler, the child may not know what money is, so you can start off by rewarding them with coupons. You can let them earn coupons by helping clean the play room, for example, and with this coupon they can exchange it for TV time or Movie time. Be sure to label each coupon with the number of coupons they need in order to watch TV. A short television show like “Spongebob” might take one coupon; where as a long movie like “Finding Nemo” may require four coupons. When your child gets older start giving them an allowance for the chores around the house, and help them save the money they earn. Once your child gets the concept of saving and spending money you are enabling in their minds great concepts on how to save.
The following Tips can help you show your child how to save money:
- Use a Piggy bank or Jar – Most children like the noise of the coins falling in the piggy bank or being able to see the money grow in a jar.
- Make a goal chart – Help your child and encourage them to pick out the things they want. Once the goals are met with how much money is needed to save, they can get their reward.
- Show good examples – Show your children how you save money, and how important it is to have a savings account.
- Rewards = Money – If your child saves a certain amount of money, let them get a toy at the end of the goal being reached. This will show the child that after saving for what you want, it is possible to get it.
- Contribute to your Child’s saving – Encouraging your child to save is important. Try to get them excited about saving, perhaps offer to put twenty five cents for every dollar they save.