How to Encourage Kids to Save
If you have kids, chances are that they spend any money that is given to them without a thought for saving towards their future. However, the earlier good savings habits are taught to them, the better their futures will be with regards to finances. Below are some tips to help encourage your kids to save a portion of any money they receive.
Teach them to Set Goals
These days, there are costly items and tech gadgets that most kids would love to own. If this is the case, this could provide you with the ideal opportunity to get your children interested in saving some of their money.
For instance, if your child is keen to get the latest phone or gaming console, you can sit down with them and calculate how much money they will need to save and how long it will take them to obtain the desired amount of cash.
Offer Incentives for Achieving Savings Goals
Although many parents may view this as a form of bribery, providing incentives is one of the easiest ways to encourage kids to save more of their money. An example would be to offer your child a monetary reward that can be put towards what they are already saving. If you cannot afford to match dollar for dollar, you can provide them with an amount that will not destroy your budget in the process.
Establish an Allowance System
When kids don’t receive money regularly, they aren’t provided with much of an opportunity to save anything. As such, it’s a good idea to implement an allowance system in your home that suits your budget and is age-appropriate for your kids.
When introducing your allowance system, it’s essential to reinforce the fact that your child will need to earn his or her money. This can be done by providing them with various chores to complete that are over and above those that they usually do.
Help them Open a Savings Account
Although it’s possible to open a savings account for kids of all ages, those who are eight years and older will probably benefit the most from them.
It’s a good idea to have your child accompany you to the bank when their account is being opened. This will not only allow them to see how the process works; you may find that they’ll be more enthusiastic than ever to put some of their earnings into their very own savings account. Some banks offer a range of incentives for kids who save beyond a specified amount of money as well.
Children who are taught the importance of saving money from a young age tend to be more financially responsible after becoming adults. This is why it’s crucial to teach them about the benefits of saving money as early as possible in life. If you would like to obtain advice regarding teaching your children to save a portion of the money they receive, contact our team today.