Skip navigation

Teach your kids how to save money

A jar for saving money"I want that!" "Can I have this?" "I need it!" "But everyone else has it!"

Sound familiar? Many parents feel frustrated that their children have a lot of wants and needs, but aren't sure how to help their children learn about the importance and value of money. There are quite a few ways that parents can quickly help their children learn to appreciate money, learn to save money, and perhaps most importantly, learn how to handle money effectively.

First of all fully explain money
Make sure you talk with your children about where money comes from. Explain that grown-ups earn money by going to work. If they don't go to work, they won't earn money. Putting this in simple terms for your children also helps them to understand that your family has a limited amount of money. This will help your children understand that although they may want many things, there are also times when you may not be able to afford something. This is where saving comes in.

Show your kids how to save for a goal
Show your children the importance of saving money. Pick something you want to save up for as a family. For example, save up for something large like a vacation or something small like a pizza night. Write down the amount of money you want to save and tape it to a small jar. Each family can contribute money to the jar. Even if your kids throw in loose change, the jar will quickly fill up. When you reach your goal, you'll be able to enjoy the reward of your savings.

Get your kids used to choice
Don't control everything about your children financially. If you choose to let your child have an allowance or if your child as birthday money to spend, don't require or force your child to save it. Instead, let your child make his own choice but talk with him about it. For example, if your child wants to save up for a bike but sees a small car he wants, talk with him about the decision. Remind him, "If you spend your money on the car, you'll have to start saving again for the bike." Your child may find that this is a decision he's willing to live with but he may also decide he wants to wait.

Teach your kids to delay purchases
Remind your child to wait before making a purchase. There is absolutely nothing wrong with thinking about a purchase overnight or even for a few days before making it. If your child wants to buy something but you would rather him save the money, consider having him wait a certain amount of time before you bring him back to the store to let him make his purchase. Make sure your child knows that you will always bring him back to the store when he decides he's ready to buy what he wants.

Copyright © Sarah on 2017

Editor's Note: Find below more information on teaching kids to save;
Teaching kids about money and the importance of saving
More ideas on teaching kids about money
Teaching your kids to save based on age group
Tags: family, home, money