It’s hard to encourage children to pay attention to their money. Many kids save a little money, then see a toy they want and immediately forget the benefits of saving money. Teaching children about the importance of money and getting them excited about saving is crucial. Use this guide to show kids that saving money can be fun and exciting.
Savings Helps People Get Big Things
The first step in getting children to save their money is to explain the benefits. We all know that saving money allows us to buy bigger and better things. Children, however, may see it as losing the money forever or giving it away. Explain how savings accounts work using practical examples the child can relate to. Then, prepare the child for their first trip to the bank.
Their Money Is Safe Yet Easy to Get in a Bank
Next, take the child on a trip to a bank in Leominster. During the bank trip, open up a new savings account in their name. Have them help fill out the paperwork and make them really understand that the savings account is theirs. Make each trip to the bank feel like a special event to really get them excited.
Explain in detail how the bank works and how it helps their money grow. Explain that if the child starts saving now, they will be better off in the future. Set milestones or goals for the account here to help the child actively work toward growing their account.
Show Them How Coupons and Deals Work
Coupons and comparing prices are a big part of saving money. Show children how saving a few dollars allows them to buy extra things. If a parent doesn’t have time to clip coupons, try taking the child to a dollar store. Show them how the toys they find at the dollar store are much cheaper. Explain that they can by one toy for $5, or they can go to the dollar store to get five things. This is an easy example that children can understand.
Provide Small Rewards for Being Responsible with Money
All life lessons sink in faster when there is a tangible reward involved. For example, give them a lollipop after they deposit money into their bank account. If they helped clip coupons, show them the amount of money that was saved so they feel a sense of accomplishment. Then, let them pick out something fun to do with the money.
Getting kids involved in their finances can be a challenge. By being consistent and showing the child step by step, they can clearly see the benefits of saving.