Easy Money Saving Tips For Kids

Easy Money Saving Tips For Kids

Like it or not, money is an essential part of life, and therefore it is vital that we teach our kids about money and how to save it. While money is becoming a bigger topic in the classroom, it is still important that as parents, we have the conversation with our children. Instilling good habits from a young age can have a lasting impact down the line, when your children are all grown up and need to save for something important, like their first home.

The good news is that there are lots of tips and tricks to make saving money fun and interesting for children! So, have a read below at some of these easy money saving tips for kids:

Set Goals

Along with pretty much anything in life, it is important that we set goals. Think about what your child will be saving for. If there is an end goal in mind, this makes it a lot more enjoyable and motivating for them to reach that goal. Also keep in mind that if the end goal is a major one that will take a long time to reach, then it is important to set smaller goals within the major one, so it doesn’t discourage your child.

Savings Rewards

To help your child remain motivated to reach their savings goals, you could offer an incentive. For example, let’s say your child is saving up for this really cool bike that they have wanted for a long time. You could offer a bonus when they reach a set goal, or if it is a particularly expensive item, you could offer to pay for half of it, if your child saves up the rest.

Talk About Needs vs Wants

No need to get into an entire economics lesson, but discussing the basics of needs vs wants is highly recommended. Most children these days will say “I need this iPad” or “I need this video game”. So, it is important to explain the difference, as they don’t need this, what they do need is food, water, shelter, clothing and the like. Once your child knows the difference, they will become better savers.

Let Them Earn Money

Your children aren’t going to be able to save money if they can’t earn any in the first place. If your children are too young to go out and get an actual job, then you could put together a list of chores around the house, and attached to that would be the price of completing each job. This is one way of tackling it, or you could offer your child a weekly / monthly allowance, on the basis that they do certain jobs each day / week. There should be clear rules in relation to this as well, so your child knows that if they spend all their allowance, there is no more until the pre-agreed upon time.

Track Spending

Sometimes, even as adults, we don’t really know how much we spend. It is important for children and adults alike to track their spending. These days there are a lot of different apps that can help you in this area, or you can stick to the good old fashioned spreadsheet! Breaking up your child’s spending into categories, so they can see where they are spending the most, and you can encourage them to cut down if needed.

Place To Save

If your child is going to start saving money, then they are going to need a place to keep the cash! While a piggy bank used to be the way to go, it is much more beneficial to have your child’s savings placed into an actual bank. It helps to lessen the temptation of taking the money and spending it, because the cash isn’t sitting right there staring back at them!

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