With Josiah’s first birthday coming up in just a few days, I can’t help but wonder of the ways we could teach him to save. In order for him to learn the value of money we have to encourage healthy savings habit at an early age. Which is also why I came to this though … whatever happened to kids saving money? Things surely have changed from my generation to the kids of today. I remember as I was growing up I’d work hard just to get that toy I have always wanted. Many of today’s young adults are entering the world without a clue as how to save for the things they want. As parents, it’s time we went back to teaching our children about saving rather than giving them everything they ask for. Let’s take a closer look at some savings ideas for kids.
Helping Kids Set Goals
First things first. You need your children to have a goal. The goal should be something that motivates them to work hard. It might be the latest gaming system, a new bike, or something smaller. If your children have something they really want, they’ll work hard to save money. Your children can have a common goal, but it’s good for each child to have their own goal as well. Start with individual goals so that kids can better see the reward of saving money.
How Kids Can Earn Money
There are so many ways for kids to earn money. Your children may get an allowance for doing their weekly chores. If they want to earn extra money, you can give them additional chores to do. Kids can also do things for neighbors, such as raking leaves or pulling weeds. Then there’s the classic lemonade stand which can be changed to a hot chocolate stand or even a place to sell crafts and artwork.
Watching Savings Grow
It’s important that children see money growing. A great way to do this is to create a tube on a sheet of paper and mark off lines that have amounts next to them. As your child saves money, she can color in the tube up to the amount she has reached. This is a great visualization, especially if money is going into a savings account. You can also purchase banks that will count the money as it’s dropped inside and display the total.
When you teach your children to save money at an early age, you’re instilling a value skill. Children will grow into adults that are less likely to charge items onto a credit card. In other words, you’re raising children to be financially responsible. Another benefit is having children who will work for what they want rather than just asking you for money. If you think that children stop asking for money once they move out, you’re wrong. This is why you need to teach children about savings.
When was the last time you talked to your children about savings? It’s never too soon to start teaching kids about money. Even if you have small children, you can teach them about putting play money into a bank and then trading it in for a small toy. Too many kids are leaving home with the idea that everything can be charged and paid off later. Raise your children with the mindset that you get the things you want after working hard and saving money.