When it comes to teaching kids to save, the earlier you start the easier it will be for them to learn. Children who learn the importance of saving when they are young have a much easier time reaching their financial goals as adults. Making saving fun will help to keep your kids engaged and motivated to reach their goals. Here are five fun ways to get your kids to enjoy building their savings account.
Get Your Kids to Enjoy Building Their Savings Account
1. Encourage different goals . Teach your child about budgeting in a visual way. Have them create three money jars, and label them “saving,” “spending” and “charity.”
Whenever they get cash from an allowance or gift, teach them to divide it into the three jars, and spend or save accordingly. After a while, they’ll notice the money in their “saving” jar growing.
2. Open a kid-friendly savings account. After your child has a little cash built up, they’ll be ready for the next step. A trip to the bank to open their very own savings account. Most banks offer competitive interest rates and waive service fees on savings accounts for customers who are 18 and under or full-time students. When your child opens a savings account, they’ll have a chance to see their money earn interest and grow over time.
3. Match their savings. Help your child set a savings goal and when they reach it, say saving $100 for example, reward them by matching some or all of their savings. They’ll be exciting by the substantial increase in their savings and motivated to continue adding to it.
4. Make savings fun. Kids can also learn about saving money by playing games. Classic board games like Monopoly or The Game of Life help to teach basic financial skills. You can also visit websites like Kids.gov to find age appropriate games and learning videos.
5. Short-term vs long-term desires. Teach your kids about saving for things they really want instead of spending all their money as soon as they get it. Show your child that they can spend $5 now on comic books or a new toy or save it for something bigger that they may want in the future, like a video game.
Teaching them to save for larger goals they really want will help reduce the desire to impulse buy. Teaching kids how to save can be fun for them. By showing your child different ways they can manage their money, you can help prepare them for financial success as adults.
Do you have tips on how to get kids to enjoy building their savings account? Link up your thoughts and tips in the comment section below.