Saving money is an important step to building wealth and having financial security in your future, and it’s never too soon to start teaching your kids good saving habits. Building good habits when they’re young can help ensure your child’s future and will enable them to make sound decisions with their money when they go to college or leave the home. You have a huge part in helping shape these habits, and it’s never too soon to start! Use these six tips to help your kids start building good saving habits now.
- Set a Good Example
You are your kids first example of how to spend and save money. You can have a jar that you put small bills into in a place that your child can easily see, and even make a point of putting money into your savings jar when they are watching. This shows your child that saving is normal and easy to do.
- Start a Conversation
Just talking to your kids about how they spend their money can encourage them to save. For younger kids you can ask them about a toy or other item they would like to buy and how savings can help them reach that goal. For older kids you can introduce the idea of interest. The example of doubling pennies everyday can turn into 10 million dollars by day 31.
- Use See-Through Jars
A clear jar makes savings visible and accessible for kids. If you provide your child with an allowance give it to them in denominations that encourage savings. For example, if your child gets five dollars a week give it to them in one-dollar bills, that way the money can be split into different jars instead of being spent at once.
- Look for Good Deals With Them
You can help your child understand more about money, spending and savings by encouraging them to compare prices or wait for sales to happen. If there is a game or book your child wants at the store you can help them search online for lower priced options. Or you can have your child help you at the grocery store by clipping coupons or comparing prices in the aisle.
- Open a Youth Account for Them
Once your child has started to think about saving or has filled a jar or piggy bank at home, it is time to open a savings account for them. Before you open the account have them count the money they already have saved at home, so they know how much they will deposit. Then they can open a savings account with you at your local credit union. At PCU all you need to start a youth account is 5 dollars!
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