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How To Teach Your Kids To Save Money
While saving money as adults is important, teaching your kids methods for saving money is important too. It lays a strong foundation for them and allows them to become accustomed to saving money while they grow up. It paves a future for them where they will know how to budget, and save for things they want and need, and this is vital to adulthood. Instilling values in your children while they’re growing and developing is a great way for them to really understand the importance of them.
First, you want to map it out. How much can you as a parent contribute to their funds, whether it be allowance, a reward for doing certain things, or just birthday money? For them to learn saving, they need to have something to save. The best way to really get into teaching them how to save is to provide an allowance with which they can spend or save.
Next, you set up a bank. Whether it’s a child’s savings account at a local bank, a piggy bank, or a wallet, having a place where they can put the money is important. Find something age-appropriate for your child and something that they would like. Some kids like to visually see how much money they’re saving, so something like a piggy bank or wallet is helpful.
It’s also important to set goals with them. If they just want to save generally, then have them set aside a certain amount of each allowance. If they have a goal, sit down and have them figure out how long it will take them to save for it depending on their allowance and saving goals.
Ultimately, it’s about goal setting and having a focus on those goals. Money saving can be really simple for kids as long as they have help and guidance. It’s a great skill to have and starting young is super helpful!