What was the hardest part of the financial makeover you’ve been undergoing? Was it learning to create a budget? Maybe it was stopping the urge to use credit cards. If you’re like many people, one of the toughest parts of getting your finances under controls is learning to save money.
Now that you’re learning how to save money and why it’s important, it’s only natural to want to teach your children the same lessons. Understanding the benefits of saving money at a young age is bound to save your kids from many financial woes as they make their way toward adulthood. But how will you teach them?
Insist the kids save a portion of their weekly allowances. When allowances are doled out you can simply make it known to your children that they must place at least 25% of their allowance into their piggy banks. (Make sure you give the allowance to your kids in denominations that make it easy to split that 25 % out.) Then allow them to spend the rest of their allowances as they see fit. A weekly contribution to savings is a great habit to build.
Help your kids choose appropriate savings goals. Older kids may be drooling over the latest video game system. Smaller children may be more interested in a new action figure or Barbie doll. Once the goal is chosen, be sure to encourage the kids by figuring out how long they’ll have to save to the goal. Oh, and don’t forget to make a big deal out of finally being able to go to the store and realize that goal.
Share your own savings plans with the kids. Showing the kids that you think saving is important, too will allow you to be a good role model for your kids. Tell the kids what your goals are and how you chose them. What thoughts went into setting your goals? How long will it take you to achieve them? Kids who grow up in families that aren’t afraid to discuss their finances are better prepared to handle their own finances when they grow up.
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