4 Simple Ways to Teach Kids How to Save Money
Learning how to save isn’t something that needs to happen later on in life. Kids can learn easily at any age. Teaching them money skills is a great way to make sure they have a good foundation for their adult lives.
I’m sure many of us can easily remember the habits or lessons our parents passed on to us. If you yourself want to kickstart your kid’s financial literacy, here are some simple ways to teach them how to save money.
1. Let your child participate in real-life experiences
Kids learn best by example. Make sure that your own spending and saving habits are clear. Make sure your child doesn’t see you do any indiscriminate spending.
Next time you are at the grocery or a store, involve them. You can walk them through the prices for certain items. Use the opportunity to explain certain things, like that the price indicated isn’t per item, but for a bunch of bundled items. You can also explain which items are more expensive, and why they cost more.
You can also involve them in paying the bills. If you use Coins.ph, you get a P5.00 rebate on bills payment. You can teach your kids how a rebate can translate to effortless saving.
2. Visualise their Savings Goal
Having a goal is the best way to start teaching kids to save. It’s best to have something specific in mind, like allowance for shopping or a trendy new toy. Write down or have a photo of the goal put up somewhere easily visible. Visualization is a great teaching tool, and it’ll help the idea of saving be more concrete in their minds.
For an added step, and for a quick way to integrate math lessons, you can write down the amount of savings. Adding the money up over time will be gratifying!
3. Store savings in jars or piggy bags
Give your kid somewhere to physically drop their money. This helps them visualize their progress. It can be a piggy bank – doesn’t have to be an actual pig, but you can’t deny that those are cute! It can also be just an ordinary jar. Kids will enjoy shaking a piggy bank and hearing the coins rattle around, or seeing the money pile up through the glass of a jar.
You can have separate jars or piggy banks for the goals that we talked about in the previous step. Again, it helps them to visualize, so you can print out a photo and stick it up beside the container.
4. Match their savings or add interest
This is a great way to motivate a child to put their money away. The biggest step is actually putting the money into the savings instead of spending it. You can hurdle that by promising to match their cash, or by adding a certain percentage.
Older kids will understand right away that this is a good deal. Younger kids will be given an opportunity to hear about the principles of investing or of compound interest for the first time. If they don’t understand the benefits of this deal, at least you know you’ll be saving along with them too, right?
By teaching your kids at an early age, you’ll be equipping them with lessons they can use their whole lives. These steps can lead to habits that they’ll be thankful to have when they’re older.