Credit Union Youth Month: How To Teach Kids About Saving Money
03/29/2023
Children see what you do and take it all in, like when you count out cash and coins, when you swipe a card, when you pay bills, and all the other parts of life that involve money. As children learn about how the world works, they discover how money plays an important role. When you instill smart saving habits early on in life for children, they’ll know what to do when they become adults.
Teaching kids about money doesn’t have to be a lecture. Opportunities to teach your kids about money are around you each and every day. Here are some of the ways you can teach your kids about saving money to set them up for a financially secure future.
BE A GOOD EXAMPLE
Kids can form their own attitudes toward money as young as age five, according to research, so lead by example. Your kids will pick up on your reaction to spending and saving money. Let this be a motivator for you.
If you struggle to save money, talking to your kids about saving money will be a struggle. Contribute to your 401K, accumulate a rainy day fund, and show your kids that you aren’t always able to buy everything you want.
LET THEM EARN MONEY
Before kids are old enough to work, there aren’t a lot of ways for them to get money aside from what they may receive on birthdays and holidays. Since kids can’t save money and learn how to use it if they don’t have it, consider letting your children earn an allowance by helping out with chores around the house.
SET GOALS
Saving money may seem pointless to a kid without a goal in mind. Goals are a great motivator for kids to see their hard work pay off. Talk with your kids about what they want to save money for. Then, make a plan and a timeline of what they need to save and when they’ll meet their goal if they stay on track.
TALK ABOUT MONEY AND INCLUDE THEM IN THE PROCESS
Money may feel like a taboo topic, but it doesn’t have to be. If kids never hear about money, its importance, and the value of saving, they won’t know what to do when they start having money for themselves.
Use everyday situations to talk about saving money. Talk about money and budgeting when you get school supplies, as you grocery shop, and as you prepare to get change back in the drive-through. Include your kids in these activities by having them do mental math or by having them pick out groceries that add up to a specific amount of money.
Another way to include children is to save money for something the whole family can enjoy. Kids should learn that going on family vacations or getting a newer car aren’t things that just happen without a lot of work. Show them that they’re even more satisfying when you’ve planned, saved, and been smart with your money. Include them in the process of deciding where to go on vacation, what activities you’ll do, and talk about what factors went into that decision-making.
GIVE THEM A PLACE TO SAVE
One of the best ways to teach kids about saving money is to give them a place to practice doing just that.
When you open a new savings account with INOVA Federal for your child who is 17 years old or younger, we’ll deposit $25 into your child’s account and your account. They’ll earn competitive dividends when they have $100 or more in their account, get access to free digital banking, and more.
To get your kids familiar with the importance of saving money, open a new savings account for them online or by coming into one of our convenient locations.