Teaching young children to save money is possibly one of the hardest jobs a parent faces. After all, there are all kinds of things that simply beg to be bought and with such poor spending habits in today’s economy, your child could easily believe that money grows on trees. However, learning good money habits as a child can trickle into adulthood.
One way that you can get your child started on their savings is to pay your children for doing chores around the home, and ensure that they are saving the money from those jobs somewhere safe. Doing a job that carries the connotations of pay will help your children learn the process of working for money, and saving money from those jobs will help them develop good money skills. This will help them to never expect being given money without working for it.
You can also open a ‘starter’ bank account for your child. This helps them save money, while removing the physical temptation to spend what’s in their piggy bank. When the physical money is not available at hand, saving money becomes easier. Help your child keep a bank logbook to keep track of how much money they are saving.
If your child is older, they can start saving money by doing jobs for grandparents, aunts and uncles, and neighbors. Cutting grass, weeding flowerbeds and walking dogs are all ways that your children can begin earning and saving money, while preparing for the future at the same time.