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Learning how to save money is an extremely important part of being financially stable and having a life that you dreamed of. As we get older and venture into adulthood we find out how difficult it is to save money, while also supporting our family. Kids who’ve been educated about strategies to save money will grow up to be better with their finances. Today I’m featuring a few ways you can teach your kids about saving money and help them blossom financially in their adult life.
Discuss Wants vs Needs
The first factor in teaching kids about saving money is to have a discussion regarding a want versus a need. This is the ultimate start to learning how to best save money. Explaining what a person’s basic needs are such as food, shelter and similar items will help a kid understand what their needs should be classified as. When you’re a kid, a brand new game console may feel like a need, but us parents know better. Discussing wants versus needs with your kids will help them comprehend the difference between each category.
Set Financial Goals
Have your kids earn their own money. This can be through extra chores or helping neighbors out with yard work. If they earn money of their own, they are more likely to see the value in it. You can help them place some of the cash aside and spend some. Work with your kids to set financial goals based on what they earn doing this work.
Dedicated Savings Jar
Whether you opt to open a savings account for your kids or create a money saving jar in your house, it’s important that your kids have a dedicated place to create a nest egg. This is a place where they’ll put their portion of earnings into savings and not touch it. Giving your kids a savings account is a great way to let them see how their money can grow. There are many savings account options for kids to earn interest and build up savings from a young age.
Let them Help With the Family Budget
Kids can get overwhelmed with complex details, but simple things, like how much you spend on groceries, can be a great teaching moment. You can even have them help you menu plan and see how much of the grocery budget you’ll need to buy the items.
Show them Where Their Money Goes
If you want to go all out in teaching your kids about saving money, then you should show them how they are spending. If you take all of their money earned, have them record how they use their money by saving or spending on anything that they want or need. After a set period of time, maybe a month or more, show them where there money has gone. This process will help teach your kids about saving money and spending it wisely.
I hope you enjoyed these ways to teach kids about saving money. If you want to help your kids be financially successful in the future, then you must work now to teach them healthy saving habits.
How do you teach your kids about saving money? Tell me in the comments!