Did you know April 27th is National Teach Children to Save Day? This year, take a step beyond simply giving a piggy bank and provide the gift of lifelong financial wisdom to your young ones. Learning to save is a crucial life skill that can secure their financial well-being and foster a sense of responsibility from an early age. Here’s how to teach your kids to save money with our expert tips.
Start Simple with a Savings Goal
Encourage your child to save for something they really want, like a new toy or a gadget. This personal goal will give them a tangible reason to save and help instill discipline. To make it even more engaging, you could offer to match a portion of their savings when they reach certain milestones. It’s a smart strategy that not only accelerates their savings but also reinforces the positive benefits of saving.
Take Advantage of Technology
It’s no secret that financial transactions are going digital, so it’s important for children to understand and use technology to manage their savings. Several apps and platforms are designed to make savings fun and intuitive for kids, like ones that show their savings growing like a plant or allow them to set up savings goals with progress trackers. These applications make the invisible process of compound interest more visible, promoting a better understanding of how small savings grow over time.
Look for Consistent Earning Opportunities
Consistent earning opportunities are an important teaching tool. Relying on one-off chores or a monthly allowance does not provide a strong lesson. Instead, encourage your children to set up regular ways to earn, such as a weekly set of chores for a consistent amount of pocket money. Following this approach to earning and saving mimics the real world and helps prepare your child for the future.
Play The Waiting Game
Teach your children the value of patience through delayed gratification. When they want to buy something new, suggest waiting for a short time before making the purchase. A waiting period allows them to decide if they truly need the item and gives them a sense of accomplishment for saving over time. Implementing the “waiting game” ensures they’ll make more thoughtful and well-planned purchases, thus avoiding impulse buying tendencies.
Make Saving a Family Affair
Learning and saving money shouldn’t be solitary endeavors. Make the process a family activity by doing savings challenges together. Set a family savings goal for a vacation or a home upgrade and track the progress as a unit. Your children will feel valued and included in important family financial planning, and it also shows them the value of saving in a larger context.
Lead by Example: Teach Your Kids Financial Wisdom This National Teach Children to Save Day
The single best thing you can do as a parent is to set a good example. Whether you’re trying to foster better financial habits in your children or seeking to hone your own money management skills, remember that the National Foundation for Credit Counseling is here to help. We’ve been empowering families through financial education and advice for over 70 years.
This National Teach Children to Save Day, remember, the first step in teaching financial wisdom is setting a strong example. NFCC believes every family deserves the foundations for financial stability. If you’re ready to take control of your finances, we’re just a phone call away at (800) 388-2227, ready to connect you with our partner credit counselors. Your children follow your lead, and with the right guidance, they’ll know the right path to walk.