Teaching Your Children to Save
Teaching Your Children to Save is priceless developing their lifestyle when they are grown.
Start with their first piggy bank. Let them begin when they are young. Make it fun and easy to save. Teach them the goal is to fill up the bank. Encourage them to put any change they receive into their bank and not spend it.
Open a savings account for them. Recommend taking a percentage of all gifts and money earned and put into their savings account. A perfect example of compound interest is to show how doubling a penny once every day for 30 days will eventually generate $10 million dollars!
Create a visual. Draw a thermometer on paper to show how much they are saving, allowing them to see the progress. Another Visual would be using a long strip of paper and a marker. Have $0 on one end and $100 on the other end. Create milestones $5, $25, $50 etc. Depending on their age give our sticker rewards.
A clear jar is another great visual for kids to see results as the jar fills. Have a goal of how much they want to save before they take the money to the bank to put into their savings.
Be a True Example. Show how you are putting money in your savings. It could be that you share with them the envelope system by money guru Dave Ramsey. You break money down into 3 or 4 sections and put them money in each of the envelopes.
Talk to your children about money. They do not teach this in the schools so it is up to the parents to make sure children understand how to save or they will always live paycheck to paycheck.
Asking right questions can get them to think long-term and have a positive relationship with money. Letting your children know you’re always open to have a conversation about money can encourage them to ask questions. It is a tough learning curve.
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