Fun Ways to Teach Kids About Saving Money
“It’s never too early to start saving.” This is something most of us have heard all of our lives. While this statement is true, we like to take it a step further by saying it’s never too early to start learning about saving. Understanding the importance of saving money is one of the most prominent aspects to building wealth and sound financial planning solutions.
Students may learn about the basic fundamentals of personal finance starting in junior high and high school, but their first interaction and relationship with money likely began long before that.
So, when is the best time to get started? You can begin teaching your child the basics on saving money as early preschool and kindergarten. Anyone remember their first piggy bank?
To help you get the conversation going, our team of financial advisors have a few tips and activities that will get your child excited about saving money (you can thank us later)!
3 Tips for Teaching Your Child About Money
Start with the Basics.
We’ve already stressed the point of starting to save early, but before you teach your child about saving, they need to be introduced to the building blocks on how money works.
For younger children (10 & under), walk them through the basics on how to earn, spend, and save money. And, when they’re ready, talk to them about giving it away. Share about your favorite charitable organization, cause, or religious affiliation, and why it can be just as rewarding!
Many parents consider giving their children an allowance. This can be a great hands-on experience for them to go through the process of earning money, learning how to budget their own “income,” and understanding what it takes to save up for something they’d like to have.
Counting the Cost.
Not sure if your child is ready to learn about money? If they can count… they’re ready!
In order for them to grasp the concept of money, they need to understand the value of each individual coin and how they work together. Use examples or illustrations they can relate to. Let’s take ice cream from an ice cream truck as an example. You might use a fun cut-out of an ice cream cone + cut-outs of the different coins they can use to make the purchase.
There are plenty of activities you can do to help your child learn the fundamentals of counting money and understanding its value. Check out a great online game from ABCYa, here!
Set Attainable Goals.
From a financial planning perspective, setting goals is pivotal to pursuing both short and long-term saving objectives. And, like anything else, attainable goals are what keep us focused, aligned, and on track for our financial future.
When it comes to setting goals for saving money, kids need a goal, or something to aim for. This can teach them simple organization skills and help them start flexing those saving muscles!
As you know, a child’s patience can run out quick. The goal should be something that can be reached within a few weeks, rather than a few months. So, instead of starting with a new XBox or brand new bike, encourage them to start with something less expensive.
After they have a goal in place, help them create a budget that allows them to track how they’re spending and saving their money. This will also help determine how much they need to be saving each week in order to attain their goal.
Best part? Seeing your child reach their goal for the first time is priceless. Once they’ve started the habit of saving money, it may even be hard to get them to stop. Which is a win, win in our books!
Summer Savings
Nobody knows your child better than you do, and if they’re like most kids… talking about money is most likely not at the top of their “to-do” list, especially during the summer.
But, that’s where the emphasis on fun comes in. Teaching your child about saving money can be fun with the right kind of activities (yes, even during the summertime).
Fill the Jar
Sometimes, it’s about going back to the basics. Similar to a piggy bank, collecting money in a mason jar is a fun and impressionable way for kids to watch their hard-earned money build up.
But, kids don’t want to “fill the jar,” just to fill it. It’s important to give them something to work for. This could be something as big as a trip to Disneyworld, or as simple as taking them out to eat at their favorite restaurant and seeing a movie with friends. To put “earning money” into practice, you may want to consider giving them a few responsibilities around the house each week. And, for every task that’s complete, they can put their daily/weekly “wages” in the jar!
Once the jar is filled, it’s time for them to count their earnings. This in itself can require patience (and maybe a little help from mom or dad), but it’s always great practice for the kids.
Filling the jar is less about how much your kid(s) saves, and more about giving them an opportunity to experience the discipline and reward of saving money. Not only that, but it gives you a viable excuse to go out and have some fun with the family when it’s all said and done!
Other activities for kids to earn and save money this summer:
- Lemonade stand (timeless… and cute)
- Pet care services
- Sell candy / baked goods
- Help organize a garage sale
- Sell handmade jewelry (friendship bracelets, necklaces, etc.)
- Lawn care services
These are age-dependent, but are great options for kids to learn how to plan, organize, budget, save, and bring a little cash in over the summer!
Start Saving Money with BE Wealth
Teaching your kids about saving money doesn’t always come easy. Not only that, but leading a family towards financial independence, however you choose to define it, can be hard to do. If you want to lead by example, let us be your guide.
At BE Wealth, your success is our success. We’ll take you through a step-by-step process to develop a plan tailored to you and your family, your objectives, and long-term savings goals. Learn more about financial planning with us today!
This is meant for educational purposes only. 06/19