Teaching your kids about money now can help them be proactive about their own financial futures. And with a few simple steps, you can turn your little one into a big saver.
Learn to earn
Kids learn early that money is either earned or handed to them. Instilling a money-is-earned work ethic can never begin too young.
Start with a small task or an age appropriate chore chart which must be completed before an allowance is given. Have them stash their cash in a clear piggy bank or a canning jar where they can see their money grow.
Saving for now and then
Talk to your kids about saving for the things they want and the things they need, even if those things are far away.
College tuition, a vehicle and insurance and a nest egg are future “musts” your kids likely can’t understand while they are young.
Help them set up a savings account for the things they want now, like a new Nintendo DS, and that’ll help them develop good saving habits for things farther away like college.
Make finance fun
Kids of all ages might need a little reward (besides the savings!) to motivate them into saving cash. Check your local bank or credit union to see if they offer a rewards program for kids who save consistently or reach monetary goals.
How do you teach your kids about money?