Does your child have a piggy bank? Most kids nowadays don’t, but that doesn’t mean they shouldn’t have one! It’s a great idea for kids to not only have a bank account for “real savings” but also a piggy bank where they physically put money into and have it grow.
I recommend getting them an old-fashioned piggy bank like the one below to help them start their saving journey!
As a parent, instilling good values and virtues in your kids is important.
As parents, we must teach our kids basic life skills, including talking about money. Basic financial literacy is an important part of educating your children. Saving money is an important part of life, but your kids are probably not very interested in putting their money away where they can’t spend it. It’s your job to get them interested in saving money.
Here are fifteen ways to start a conversation about saving money with your kids.
Build It Into Their Allowance
Require your kids to save a portion of their allowance or save it for something meaningful to demonstrate how valuable saving money can be.
Start Small
Even adults aren’t huge fans of saving money sometimes; remember that they’re still kids, and teach them about money in stages rather than overwhelming them with details.
Match Their Savings
Up the ante; anytime your kid sets aside money for savings, match them to encourage good money management behavior.
Establish the “Pay Yourself First” Mentality Early
If you want to encourage good behavior with money, save for them, but let them know how important it is to pay yourself first by giving them a percentage of the allowance and saving the rest.
Set Up Deposit Days
Set strong expectations by setting days where you’ll go to the bank with them and deposit money so they’ll know how much they have to save when it’s time to make a deposit.
Have Some Healthy Competition
If you have multiple kids, create a savings competition with a prize for the winner. Even if you don’t, challenge yourself against your kid and see how well you do!
Avoid Overly Negative Consequences
Consequences are important, but going overboard can cause your kid to associate money with negativity. It’s much better to be more compassionate while they’re learning about money management.
Encourage Goal Setting
Is there a video game your kids want or a concert they’re dying to attend? Encourage them to set these savings goals so they can see them through.
Teach Them Smart Spending
Part of smart saving stems from smart spending; having conversations about the importance of spending your money in the right way is essential if they’re ever going to learn about saving.
Use Visual Indicators
Jars and piggy banks are popular because they’re better for visual learners. So, when in doubt, teach your kids the power of savings with something as simple as a rainy day fund with some coins in a jar!
Have an Age-Appropriate Conversation
Kids are never too young to learn about money. That said, tailor the conversation to ensure they can absorb the information and won’t get confused.
Help Them Keep Track of Expenses
Create a simple budget with your kids; it’s another way the more visual kids can contextualize spending and saving.
Share
Share with your kids. Be vulnerable about moments where you spent money when you shouldn’t have and where you saved money where you were glad you did.
Lead by Example
If you want your kids to be wise with money, show them by being smart with money. They’ll soak up whatever behavior they see from you, so ensure that behavior is saving for the future!
Use the Allowance as Leverage
Allowances aren’t just ways to give your kids money to do whatever they want. Every time you give them money, it creates an opportunity to talk about how they’re spending that money and how they can better manage it to meet short-term and long-term goals.
