To ensure we don’t raise a generation of spoil, expectant children it’s important we teach them to save. Learning to save at a young age will help children understand the importance and value of money in later life. Below we’ve got some top tips for helping your children to understand the importance of saving.
The idea that a child can’t have exactly what they want when they want it can be hard to swallow and understand. If you daughter wants the newest games console or your son a new bicycle then show them how to save but make it fun and engage. Use different envelopes or jars to help their savings stand out. They can draw pictures, create labels and highlight on their savings pot exactly what they’re saving for.
What’s more, they can have separate savings goals. One of these may be a brand new toy they’re after whilst a more long term goal may be saving for a family holiday. Different envelopes or jars can be used to differentiate and make saving fun.
Build a Chart
In the spirit of making the whole activity fun you should help your kids put together their own savings chart and then they have a goal to work towards. Work out what they want to save for and put this amount at the top of the chart. Buy stickers and markers and if they’re saving for more than one thing then when they get their pocket money it’s up to them to split it amongst their different pots.
Offer Rewards and Incentives
Give your child praise and encouragement when they make a saving and even offer a reward. You could treat your child to their favourite magazine or a small toy when they manage to save a certain amount or it could be you allow more television time. What you reward or incentivise is dependent on your child’s personal motivations.
Be a Good Example
Show your child how well you can save too. Rather than letting them see you impulse buy things when you want or feel like it, show them you are sensible with cash too. If the family needs a new TV, then perhaps sell your old laptop for cash to show your children that money doesn’t grow on trees. Showing that you can save gives your child further motivation and even competition to do the same.
Match their Savings
A savings match is probably the most effective way of incentive’s your child’s savings. It will encourage them to keep saving if every time they reach a target you match it for them. It also makes it easier to get to the goal so your children don’t feel like they’ve been slogging away forever without actually reaching the end point. Perhaps every time your child reaches a milestone, perhaps £5, you can match this amount to keep them going. Your children will have a better understanding of saving for their adulthood if you instil the ideas when they’re young.