11 Ways To Teach Kids How To Save Money (Page 2 of 8) in pdf

chart. You can represent each week with a box and your child can put a sticker in that box once the

money from that week’s allowance is set aside.

We did this with my son, and he put a picture of the Transformer toy he wanted on the chart. We figured

out how many weeks of allowance it would take to save up (after his long-term savings and church

donations were taken out). Every time he received his allowance, he would divvy up his money and put a

sticker in a square (he loved stickers at the time). This way, he could see himself getting closer and closer

to his goal.

3. Offer Rewards for Saving Money

Consider rewarding your child for saving his or her money. Much like my credit union, which offers t-shirts

and other prizes, you can offer prizes to your children.

For example, if your child doesn’t spend any money for a certain amount of time, provide a small reward

or treat. You can also make the prizes better the longer your child saves. Try stickers, an extra 1/2 hour of

video games, toys, or whatever motivates your child.

4. Set a Good Example

One of the best things you can do is let your child see that you save money too. Put money in a jar while

your child is watching and tell him or her it’s your savings jar. This will show your child that saving is

“normal.” Plus, since most young children want to be like their parents, seeing you do it will provide them

with money lessons that further inspire them to save.

5. Match Your Child’s Contributions

A “savings match” can be a great way to encourage your child to save extra money and get an early peek

at the benefits of a company match for a retirement savings program like the 401k. While we have a

standard amount my son is required to set aside from his allowance, if he chooses to save more, we

match it.

Helping Older Kids Practice Saving

As your child gets older, a goal chart may be less inspiring, and drawing pictures on an envelope tends to

lose some of its charm. However, you can still set an example of saving and you can still match your

child’s contributions. Plus, it’s always a good idea to have different envelopes, jars, or accounts for

different purposes.

As your child grows, here are a few more ideas to teach him or her about saving:

1. Open a High Yield Savings Account

When your child is old enough to understand the concept of interest, you can look for savings accounts

that earn interest. Help your child open a high yield account online and explain the importance of

compound interest.

11 Ways To Teach Kids How To Save Money Page 2