Saving money is a lifelong habit that you can teach your children to empower them to take control of their finances in their adult years. Here are some top tips on how you can start:
Needs include the basics like food, shelter, clothing, healthcare and education. Wants are all the extras like movie tickets and candy, the latest smartphone.
Offer allowances in exchange for chores so they can learn the value of hard work and earning money.
If you tell a child to save without explaining why might seem pointless to them. Help break down their goals into manageable bites eg. a $50 video game will take 5 weeks of saving a $10 per week allowance.
For younger kids, this may be a piggy bank. For older kids, you can set them up with their own savings account. That way they can see how their savings are growing and how much progress they’re making toward their goal.
Encourage them to think about how they’re spending and how much faster they could reach their savings goal if they changed their spending patterns.
It’s tempting to steer kids away from a potentially costly mistake, but it may be better to use that mistake as a learning lesson. They’ll learn what not to do with their money.
Just as savings is an ongoing habit, the discussion about money should be ongoing and a normal part of life. Keep the conversation going.
Children learn from how you live your life. Get your emergency fund in shape, contribute regularly to savings and investments and be mindful of your own spending habits. You could decide to save for something together such as a family vacation or a new puppy.
Want help with coaching your kids on Financial Literacy? You can start as young as 8 years old. Our Financial Coach can even guide teens through healthy financial habits just before they head to college or university. Get in touch to get more information.