Lessons in Saving For Young Children
Four Simple Ways to Teach Your Young Kids About Money
How many times have you said to yourself, “I wish I would have learned good money and savings habits when I was younger?”
Well, now that we’re adults, we have the chance to help our kids and younger generations learn the lessons we wish we would have learned. According to experts, talking to kids about money can give them a chance to ask questions, express their feelings, and even get involved with solutions.
It’s never too early to start teaching kids about saving, budgeting, and other money matters. Here are four money-savvy ideas you can start teaching your children while they are still young— even your toddlers.
1. Save A Little
A piggy bank or a money box is a classic way to help a child save money. Let them choose their style of a bank—a car, their favorite character, or maybe an actual pig. Show them how to drop in the coins and save money to use in the future. Explain it’s not to be opened or dipped into unless there’s some emergency. And explain what an emergency is— and how it doesn’t include buying candy or ice cream. Every time the piggy bank is full, they can go to the local branch, cutely tip the pile of coins on the teller’s desk and see their account balance grow in front of their eyes.
PenAir offers a Level Up Savings Account that can be opened from birth to 18 years old. Once your child turns 8 years old, you can set them up with their own checking account with their own debit card.
2. Give Them Ways To Earn
Next, they will be wondering how to fill up the piggy bank faster. It’s your chance to introduce chores and get a little helper with the housework. Make a roster to check off the daily or weekly chores, and be ready to hand over your coins when they get the jobs done.
As they get older, you can show them other ways to make and save money. A garage sale is always fun and gets the entire family involved. They could also offer to help neighbors for a little extra pocket money.
3. Let Them Spend a Little
While saving is important, it’s also important to learn smart spending habits. Let your children take some of their well-earned money to go shopping and buy what they want, as appropriate. Explain to them how money flows from their pocket (or purse) to a business and its employees and cycles through our communities.
4. Show Them How to Be Giving
There are many ways to show your children how to give— whether it’s at your church, donating to charities, or sharing with a sibling or friend. Building awareness of kindness through giving is a beautiful lesson.
In the end, this will lay a foundation for your child to earn, spend and save money. Hopefully, they will remember your lessons and financial success will flow easily to them. Giving them a firm foundation of knowledge from a young age is one of the best life lessons you can pass on to your children.
Next Steps
PenAir has the accounts and resources to help you raise money smart kids. Check out these options to take their financial education to the next level: