Children can start learning money management skills even at a young age. As a parent, introducing these lessons early on in an enjoyable way can motivate your child to save and reach their personal financial targets.
1. INTRODUCE A SAVINGS CONTAINER
Providing a savings jar or box, also referred to as a ‘piggy bank’, can inspire your child to regularly store their money. This idea allows them to physically recognize the process of saving and witness the gradual accumulation of their funds over time. Each additional coin increases the container’s weight, acting as a fun, visible motivator. There are affordable digital coin-counting banks available, which can help your child monitor the total amount saved.
2. OPEN A CHILD’S SAVINGS ACCOUNT
Once their savings container is full, children require a secure place to deposit their money. Some banks have minimum balance prerequisites; ensure their savings is sufficient before initiating the account process. Children can find the idea of owning a bank account intriguing as it makes them feel responsible and grown-up, leading to increased enthusiasm to save more.
3. DETERMINE A SAVINGS GOAL
Encourage savings by aligning your child’s interest with their income. What sparks your child’s enthusiasm? Identifying that specific inclination can motivate them to save their earnings. Whether it’s horseback riding lessons or aquarium passes, connecting money-saving to tangible rewards that excite them can make them eager to save more.
4. GENERATE A VISIBLE SAVINGS TRACKER
Physical reminders can help your child commit to their savings goal. You could create a ‘money thermometer’, with an image of their target at the top. As your child saves more money, they color the thermometer until it reaches the image, indicating they’ve achieved their goal.
5. MATCH THEIR SAVINGS
Demonstrate your support by matching their contribution dollar-to-dollar. If they deposit five dollars, you’ll add another five, incentivizing them to save more and indirectly introducing them to the concept of employer matching programs.
6. OFFER PAYING CHORES
Children find earning money exhilarating. Establish a chore chart with various tasks they can complete to earn additional funds. This range of tasks can help them comprehend that the amount they earn is proportional to their working efforts.
7. PROMOTE ENTREPRENEURIAL IDEAS
If your kids have exhausted all income opportunities at home, stimulate their entrepreneurial mind by helping them start a micro-business. Options can include selling home-crafted items online, running a yard sale, or offering neighborhood services like lawn mowing or yard work.
8. START AS EARLY AS YOU CAN
It’s never too soon to cultivate good money habits. Teach your child to save a part of their earnings or pocket money, even if it’s just half of a small birthday gift. Beginning these practices at an early age can set a strong foundation, aiding them in achieving financial independence when they grow up.
How do you motivate your child to save? What fun methods do you recommend to make money-saving enjoyable?
