Children are not born with a concept of money, although they seem to have an instant skill for spending it. As a parent it is part of our role in life to teach them how to manage their pennies and save for the future.
When each of my children were born we set them up a saving account where we have been putting a small amount away each month. They also have current accounts where they put their birthday money , and of course they have piggy banks in their room.
They love spending, but they seem to be coming round to the idea of saving their cash as well. My son is saving for a new x box and my daughter just wants to know she has money if she needs it…
Top tips on encouraging children to save.
Split their pocket money in half, give them half for their piggy bank and half for their saving account. They then get he best of both worlds.
Give them extra pocket money for going over and above their usual chores.
For example, mine have to make their beds, tidy their bedroom on a daily basis. If they help me with the dishwasher, washing the car etc, they can earn extra twenty pences.
Child labour is cheap, which helps my own saving….
Set a goal, my son is working really hard to save for his x box, he knows the details of his bank account down to the last penny, and is forever looking for deals on x boxes! Motivation is a great tool for kids…
As a family, we are always keen to keep the kids involved with the finances, and also share the true value of items. They know how much houses cost, we have taught them about morgages. They know to buy a home you need a big deposit and the ability to make monthly payments. They know the difference between buying a car and a pint of milk. That way we can try and show them ways to be sensible with their cash and give them an idea of what they may need to put away for the future.
What ways do you encourage your kids to save?