How to Teach your Child to Save Money
It is important to teach your child to save money from a very young age. This can help them learn practices that will be vital as the grow into adulthood and hopefully avoid them from falling into the pitfalls of debt that plague so many today. There are many strategies for teaching a child to do this.
Let him or her open up their own bank account
Your child may feel “grown up” if he or she has their very own bank account. Some banks actually let children open one up in their name as a teaching tool. Otherwise there are various banks with free checking accounts that you can open in your name but that would represent your child. Of course, you can also make the “Bank of Mom.” Have the child make deposits into it. It can get the child used to putting money away.
Let the child practice saving up for something that he or she wants
If there is something special that the child wants, then you can have the child save up. When the child gets money such as for a birthday then you can have them put it away. When it adds up to the price then together you can go buy it and they can learn the benefits of savings.
Teach by example
It is difficult to teach your child to save money if you buy everything in sight, despite obvious money troubles. Even small children are often aware of money troubles, especially if they hear their parents fight or discuss it. If they then see their parent buy unnecessary items, then it may send them along this path as well. If instead they see their parents being careful with money and seeing something they like but deciding not to buy it, then they may adopt these habits instead.
Talk to your child about saving money
Some think that money is a taboo topic for children, but it should not be. You should talk to them about how to save money and why it is so important. You can use yourself as an example. For instance, if you see something in the store that you want but it is not in the budget then you can explain to your child how it is best to resist impulse shopping. You should continue to talk to them in greater complexity as they age.
You want your children to understand the importance of saving money. With the above techniques you can impart this lesson.
Updated On: 09/13/2010 Published On: 09/13/2010 Article ViewerClose
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