5 Ways to Save Money for Your Kids (Guide)
Teaching your kids about money and saving is very important, right? Sometimes knowing how to teach them about the “root of all evil” can be a tough pill to swallow. Okay, so money is not ALL evil, if you know how to use it. 😉
Here are 5 ways to save money for your kids! Why not start them early with budgeting, saving and money management?
1. A Clear Jar
One of the best money teachers out there (Dave Ramsey) teaches to kids that they should save their money in a clear jar. The clear jar is a visual concept to teaching kids about money. They put their money in and see how saving takes time and energy. It’s fun for kids as well because they earned the money that’s going into the jar. Plus this is a fun little activity if you create time for you and your children to decorate the jar with bells and whistles too!
2. Teach Your Kids About Budgeting
While your kids may not have enough money to do their own budgets, you do. You can have your children sit with you as you budget each week or month. You do not need to make this a scary time for them, simply get them involved in budgeting to pay for things like groceries, gas, and games. They need to understand that money needs to be set aside and every dollar should be accounted for. Of course, they are going to learn by watching you. Building a budget habit is great for teaching kids how to manage their own money, plus it teaches them the value of the dollar itself.
3. Kids Need to Learn Things do Cost Money
There is only one way to really teach your kids about money and that is to show them that things do really cost money. If a child wants to do something “fun” then that is the perfect way to show them how much things cost. Let’s say you have $20 for an activity set aside, but the activity they want to do is $30.
This is a perfect example of how some things cost more money than what you have in your pocket. All the child can do is choose an activity for $20 or simply walk away and learn from this valuable money lesson.
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4. Let Them Learn the Hard Way
Some of our most valuable lessons are learned the hard way. If your child “must have” something but does not have the right amount of money, then they’ll have to learn that they can’t buy it. You might feel sad for your child now, but isn’t this a better lesson learned now rather than later? The goal here is to teach them how to understand the value of money and how it feels if the proper precautions aren’t met.
5. Give Your Child Choices
As adults, we are faced with choices about what we will spend our money on whether it’s products or services. Don’t be afraid to give your child choices when it comes to spending (and saving) money. If your child understands that they need to save in order to get that more expensive thing they want, this is a good habit to build into adulthood.
Parent: Johnny, would you rather buy this toy for $5 now or save your money and pay $10 later for something better?
In many ways, kids can learn a lot from waiting for things instead of experiencing instant gratification. Nothing comes easy in life too, so the goal is to start teaching them this principle at an early age, they will benefit greatly from this!
As you can see, it’s not very hard to teach your kids about money. The worst thing you can do is not teach your child at all. It’s never too late to start teaching your kids about the value of money, no matter their age. Teaching your kids early about money management saves time and money! The goal is to simply set them up for the future correctly.
What is one way you have taught your child(ren) about money?
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