Saving money doesn’t always come naturally to children. With so many tempting toys and gadgets on display at the mall, it can be hard to convince kids that saving your pennies also has many lasting rewards.
That’s where moms can make a difference. When children learn good money management at an early age, it becomes second nature to them. As they grow older, they will be more likely to adopt a thrifty lifestyle and avoid the debt problems facing so many adults today.
Allowance choices — Give your children an allowance and talk to them about the importance of a budget. Teach them to set aside money for different purposes, as your family does. For example, they might save two-thirds of their earnings and use the balance for daily needs and desires.
Storing their money — Children enjoy keeping their savings in piggy banks or other containers. Use a bank made of clear plastic or glass so they can watch savings grow. If kids put money in a bank account, let them see the monthly statements so they know their balance is getting bigger every month.
Making special purchases — If your kids want to make a big purchase, teach them to save a little money for the item each week. Moms can use ledgers or charts to help kids track progress toward reaching their goal.
Family budgeting — Enlist kids in the budget process. Show them that a certain percentage of your budget goes to groceries, rent and everyday expenses. Talk to them about allotting money for long-term rewards, such as a family vacation or college education. Kids can learn about making wise money choices by helping you to clip coupons.
If you adopt these money management lessons, it won’t be long before you begin to see a change in your children. Once kids understand the value of saving, they will be more likely to make smart financial decisions now and in the future.