Teach Children to Save Day is April 21, and the idea is to educate children on how to be financially responsible, with building savings being the main objective. To help reinforce this effort, here are some helpful tips that you can use to teach your children how to save:
- Open a savings account and include your name on it. To encourage them to save, offer to put in a matching contribution when they put in a certain dollar amount or reach a certain level in their account. Teach them how to save for items they want, such as toys, clothing items, or electronic gadgets. This will help your children gain an appreciation for and understand the value of a dollar.
- Teach your children the value of money by setting examples. Save money and spend it in a reasonable manner in front of your children. Let them watch you go over your bills and statements, and then show them how you pay bills. Explain what happens when payments are late.
- Show your children how to budget. One way to do this is to assign chores, and pay them a set allowance with the incentive of a raise. Consider paying them a commission for jobs that require more effort or for exceeding your expectations. This will teach your children to take care of their hard-earned money, help them realize limitations, and empower them to make smart decisions.
- Teach your children the purpose of credit cards. It’s valuable to teach them that credit cards have advantages but can be troublesome when used irresponsibly. You can educate them on the interest that builds up and how credit cards can end up costing more money in the long run.
Teaching your children the value of money early on will give them an advantage in their future financial planning. It’s never too early to start teaching the basics!
