background image background image

Encouraging children to save money

Encouraging children to save money

Most children don’t know the value of the money especially when they are little. Some of them probably think there is a special money tree mums and dads use. How many times have you heard yourself say ‘money doesn’t grow on trees?’

In today’s money conscience society its best to teach children the value of money early on in life to help them be better prepared for adulthood. To a child, money seems endless at times and teaching children to save and skip spending sprees is often a challenge…

Here are some tips to help you encourage your little ones to save and appreciate the value of money.

  1. Piggy bank – Encourage your child to save any pocket money he or she may get in their own piggy bank. Get them involved with picking the style, colour and type of piggy bank they want. Watch them as they try their best to fill it up to the top.

  2. Budget – If your child is old enough get them into the habit of setting and sticking to a budget. When you give them money agree what it can and can’t be used for. We recommend explaining how long the money will need to last to help them plan and budget effectively.

  3. Goal Setting – If your child wants a new fancy toy or if they are old enough a new device, help them set goals to save money to buy the item or put towards the item. You can set a time frame and create a chart to help them keep track of their progress.

  4. Choices – Even if you know your child only has a few pounds or even pennies in their pocket and lots of items in their hands that they want to buy, allow them to choose what they can and can’t afford. Giving them the responsibility to make a choice helps them understand that they can’t have and buy everything they want.

  5. Be a good example – If you love spending sprees, it won’t take your child long to figure out what a spending spree is. Be responsible yourself in order for your child to appreciate the value of money and understand how important money is.

How do you help your children save money? Share your tips via our Twitter and Facebook pages.