SC Johnson Family Economics Blog
Thursday, August 15, 2013

Tips to Teach Kids How to Save Money | Family Economics

By Alison Lewis

            

I know from experience that teaching children how to save money is not an easy task. My kids usually want to spend their allowance immediately upon receiving it – I can almost see the money burning a hole in their pockets! I have learned that regardless of your children’s age, the best way to teach them the importance of budgeting is to start small and keep it simple. I’ve included a few tips below that have helped me teach my three kids the value of saving money!

Set an example: Keep a piggy bank at home and use it. I make weekly deposits of small bills or coins and show my kids the savings after a couple months. I also talk to them about the importance of saving and staying on track when it comes to weekly deposits.

Give rewards: Once my children were old enough, I assigned them each a chore and task to accomplish around the house. I made sure to reward them on a weekly or monthly basis, showing them the hard work that’s behind earning money. Giving your children a monthly allowance for special things they want to buy or do will help teach them the value of money, budgeting and saving. You can even set up a bank account with a debit card for your teenagers and have them keep track of their spending online.

Match them: To try and keep things fun, I match the amount of money my children save by 50 to 100 percent. This idea always works and helps them stay motivated to save money.

Set goals: I had my children set up some monetary goals they want to accomplish. I asked them to think through how much they would like to save on a weekly, monthly and yearly basis. Then, I used a calendar to keep track of their progress and offered rewards for positive outcomes. Establishing the rewards ahead of time gave them an incentive to work harder to meet their goals!

Make a list: I ask my children to make a wish list of the items they would love to own. This helps them to prioritize the things they really want and ensures they think through how much they should budget for in order to afford it.

For more fun tips on teaching your kids to save money, check out this post from fellow Blogger Panel Member, Melissa Hincha-Ownby.

What tactics have you used to help teach your children the importance of saving money?

1 Comment so far

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On Friday, August 16, 2013, PETER FROM HOUSTON wrote

Great ideas for kids to learn "that money doesn't grow on trees" Having chores for kids to experience earning money or having to work for it is something that is very important for them to learn. Great ideas Thanks

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