5 Tips to Teach Your Kids How to Save Money

Many kids today don’t have a clear understanding of what the value of money is.  Teenagers are growing up in a very technologically advanced age. Computers, video games, and ipods are all the things they love and no one will argue just how expensive they are. As parents, you can begin showing your kids the importance of being responsible with money and how to save it.

Here’s a few tips on how to teach your kids how to save money:

1. As soon as your kids are old enough to count, start teaching them about money. Explain what money is and the value of it. Explain to them how you use money and give them examples of what you need it for.

2.  When kids get a little older, explain the value of saving money. Help them understand the importance of saving and how it will impact their life later. Be open, honest, and available to answer questions when ever your kids have them.

3. Start giving kids an allowance as early as possible. Even little kids can get a allowance of $0.50-$1 for things like picking up after themselves or feeding a pet. This will begin to teach them the value of working to earn money.  Give them their allowance in different denominations and explain the differences between them.

4. Encourage kids to save some of their money for later. Explain to them that this is what  you do when you want or need something that you don’t have enough money for,  just in case there is a ‘rainy day,’ and for life in the future.  Motivate them by telling them that when they save enough money you will take them to buy a new toy with it or even a pair of shoes.

5. Use piggy banks for little kids and bank accounts for older ones. When kids are little, show them how saving money works by depositing money in their piggy bank and watching it grow.  When they get old enough, open a savings account in their name and let them deposit all or part of the money they earn and receive as gifts.  Always show them how much they have on deposit to keep them motivated.

Saving money is something that people learn to do and it’s best to start when kids are young.  Learning to save money does not happen in one sitting, but instead over time, so kids grow up learning the value of saving.  Children will carry this information with them through out their lives and share it with their children, so be patient and know that you’re making a investment in their future just by teaching them how to save.

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