If your kids are starting to grow older, you’ve likely thought about how you’ll teach kids about saving money. It’s definitely a more significant concept than most we think about when teaching our children, as what we teach them will have a lifelong impact! It can be hard to introduce an idea that seems so big to kids, but there are definitely some creative methods for teaching kids about saving money that will help you out! Follow along for these 5 tips for teaching kids how to save money!
Traditional piggy banks.
Of course, this is one of the more straightforward methods for teaching the concept of money to your kids, but it’s absolutely a great starting point! There are many different versions of piggy banks now and many kid-friendly options on Amazon. It doesn’t have to be just a ceramic pig anymore! Some piggy banks are fashioned to look like safes (a fun alternative for kids), and there are even some you can’t open until they’re full and you smash them open – helping to avoid the temptation of breaking into your savings early!
Try out a bank account!
If you find that your child has outgrown the piggy bank stage, try moving on to a bank account! There are tons of kid-friendly options for bank accounts, savings, debit cards, and more. Having a bank account can be fun for an older child and is a great first step into adulthood as well. Exploring these options with your kid can help teach them about money and how to use it responsibly!
Start with a savings goal.
We’ll talk more about income later, but saving is a massive part of learning about finances, especially for kids! It’s a good idea to sit down and establish some savings goals with your child, explain why they need to be set, and so forth. Saving money can be exciting for a child, so don’t be afraid to make it fun! Whether your child wants to save for vacation money, toys, games, their car, etc. – this can be a great starting point for the “money talk.”
Discuss income strategies.
It’s important to teach your kids about savings but equally important to teach them how to manage money that is coming in rather than out. Whether you have an allowance in your household or your child is learning other methods like selling no longer wanted toys in a yard sale or getting a job depending on their age, it’s a good idea to start the discussion about income when you think your child is ready. This especially can be a challenging concept for kids to understand at first. You can teach your kids how to earn and save money with patience and examples!
Talk about spending!
When introducing the concept of money to children, especially earning and saving money, you’ll want to talk to them about spending money as well. This is an essential part of learning the concept of money! Talk to your children about the difference between things you want to spend money on and things you need to spend money on. When you’re setting savings goals together, this is also a great conversational topic. Find out what they want to save for, and determine if it’s a want or a need together! It can be a fun activity that doesn’t have to be so serious and can be taught to kids in terms they understand. The best part is that teaching kids about saving money isn’t one-size-fits-all, so you can find a method that works for you and your family!
When teaching kids about saving money, it’s important to remember that there may be some things they don’t understand right away. It’s a continued practice of teaching and learning for both of you! Be understanding, ask questions to help them know, and most importantly, give them helpful tips to set them up for success!
Have you ever talked to your children about saving money? What tips do you have to share with other parents wanting to do the same thing? Share with me in the comments!