Teaching your kids to save is an important part of parenting. Kids can learn the principles of saving at even a young age. Children get money for birthdays, holidays, odd jobs and/or allowances. Help your children resist their urge to spend the money immediately by showing them the long-term benefits of saving. Help them pick an item that would take a few months to save for. Make saving exciting and kids will be more willing to hold onto their money. The following are a few tips to get started.
Teaching kids to save early and often should help them keep the habit when they go out on their own. They can save 10% or more of their allowance or all the change they have. If you have the money to match their savings this will give them a bigger incentive to squirrel away their dollars.
Younger children often do not understand the concept of banks. They may see banks as an institution that takes money but does not give it back. You can help your child save money by starting at home. Use a piggy bank, a glass jar, or even a plastic bag where they can see their money grow. Once the child has a small base of money you might want to open a savings account in his or her name. Illustrate how you make deposits and that you can withdraw the money you put in the bank account.
Even with the best motivation, some kids may not save their money willingly. In this case you can let them empty their piggy bank and see how they feel when they look at the empty jar. This might be enough to make them think twice the next time. You can also require that they save a portion of their money. If you give them an allowance, you can withhold the amount you want the child to save. After a few months, show the child how much you have saved for him or her. It is not unreasonable to require they save a portion of money for the future. After all, you are the parent.