Though most schools will not teach children important financial habits until later, you can instill successful habits in your children at home. Teaching your children effective saving habits when they are young can have a lasting impact and help them be prepared for their futures. To help you get started, we’ve compiled seven tips to help you teach your children to save money.
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Start with a piggy bank or money jar
Let your child pick out a piggy bank or decorate a jar to keep their saved money in. This creates a fun visual for kids and offers a tangible place for them to keep their money. They will be excited to put their savings in their hand-picked or hand-decorated jar. If you want your kids to visualize their growing savings, give them a clear jar so they can see their money growing.Open a savings or bank account
Once your child has filled their money jar, let them take their savings to the bank and open an account. This will teach your child the skills necessary for using a bank when they get older and will serve as an incentive to continue saving.Show them how much things cost
Children are often unaware of exactly how much items cost. Teach them to be realistic about spending and saving by showing them how much things cost — perhaps use their favorite toys or snacks to illustrate what their money is worth. Consider using Monopoly money or their own savings to count out the cost of their expenses so they can visualize how much money they can save and can spend. When children have realistic expectations about the value of money, they can create realistic goals.Define a budget
Set a measurable spending budget with your child. Creating a clearly defined budget will allow your child to see how far money goes and can offer real-world experience about bills and expenses. As you define the budget, talk about the difference between needs and wants and help your child define specific categories for their spending.Set Goals
In addition to defining a budget with spending goals, create a savings plan with specific, measurable goals. Include incentives for completing savings goals. You might offer to match what they save, take them to the movies, or allow them to go shopping once they have achieved their savings goals.Let them earn their own money
Children often have a hard time learning how to save money when they don’t have any. Let your child earn his or her own money by completing chores around the house, helping with daily tasks, or taking on small jobs around the neighborhood such as babysitting or yard work. Then, sit with them or help them as they count their money or place it in the designated sections of their budget. As they earn their money, they will be able to implement their savings and budget plans and reach their incentives for completing their goals. Earning their own money will also help them see the value of money and hard work and the importance of saving.Set an Example
If you want to instill healthy and effective savings habits in your child, the most important thing you can do is set a good example of what successful spending and savings habits are. Let your child see you saving, budgeting, and setting goals. Take your child with you when you pay bills or when you go to the bank. Talk about savings goals you have set for yourself. Including your child will encourage them to create healthy savings habits for themselves.To open a savings account for your child or to open one yourself, just click HERE or visit us at 4901 Old Jackson Hwy Tyler TX, 75703.
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