Saving Money Has No Age Limit
Money is difficult to manage, save and earn. It’s important to teach children to save money in their early years so they learn to value it. This life is full of uncertainties. Therefore, it is crucial to save money for unexpected emergencies, loan payments or unforeseeable circumstances.
Being able to save money has no age limit! Give your children the head start to learn about money, how to save it and help them be successful with handling money from their younger years to adulthood.
Here are 7 ways to teach your children to save money.
1. Lead by Example
As a parent, you are the person your children look up to for everything. They observe how you talk to people, how you treat people and they even notice how you handle money. It’s your responsibility to teach your children the value of money and more importantly how to take care of it.
Sometimes, it’s easy to forget they are watching what you’re doing. For example, if you’re at the grocery store and you’re comparing prices of products – they see that. They begin to interpret what you’re trying to do. Take the time to pause in that moment and share what you’re trying to do. Teach them in the moment so they can see how “saving money” can be applied in real life.
Set a healthy example for them and set them up for financial peace in the future.
2. Play Monopoly
That’s right! Board games can help children learn about saving money and it’s a fun activity at the same time. For example, Monopoly does a great job at teaching the value of money, the reason to save it and the possible opportunities you can have if you save money. The game also teaches you to make critical decisions with money and what the outcome of those decisions will be.
3. Create a list of goals
Sit down with your child and find out what kind of goals they have. Write a list and see what they want most. Teach them how to prioritise certain things. For example, if they buy a new toy now, then they won’t have the money to buy the shoes they’ve always wanted. Help them weigh the costs, the advantages/disadvantages and make calculated decisions. Teach them to write down that goal and help them see how saving money can help them achieve it.
You can place the list on their wall or beside their bed, so they know they are working towards a goal.
4. Fill a Savings Jar
The good old piggy bank. The most famous way children save money. Every time they get money, teach them to put a portion away and place it in the Savings Jar. If you get a clear jar, it’s easier for your children to see the money build up which can also help motivate them to keep saving.
When you give your child their allowance for the week, rather than giving them $5.00, give them 5x $1.00 bills so they can immediately put money in their jar.
5. Open a Bank Account
Once the Savings Jar is full, accompany your child to the bank. You can open an account for them based on their age bracket. There are several bank accounts you can open specifically for children. Commonwealth Bank has 4 different types of accounts: kids, teens, students and young adults.
6. Use Age-Appropriate Spending and Saving Apps
If they have a smartphone, download a spending/saving app. Here are 4 money apps that will help them learn more about spending/saving money.
- Freefall Money
- Save! The Game
- Allowance and Chores Bot
7. Share stories with them
Share your experiences with money to your children. Talk about the time you saved for your first car, bought your first house or even the time you lost money. Share the good experiences and the bad experiences. Don’t be afraid to share the times you haven’t dealt with money well. Every experience – good or bad contains a great lesson for them to learn.
Saving money is an important life skill to learn for every child. It’s not always going to be easy but it’s definitely worth it for their future. Be open with your children about money and share each other’s experiences. Your children can start saving money at any age and work towards financial peace for their future.
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