So, when your children are growing up and they are making money here and there, how do you get them excited about saving for the future? This is a tricky lesson to teach to children, but if done correctly your kids can be excited about saving their money for their schooling and other things.
The important thing in getting your child excited to save money is to teach them those principles at a very young age and throughout their lives. If you are teaching them how to save when they are young and show them that they can get something out of their hard work, then they are more excited to do it again for something else. Continuing this process throughout their lives will instill in them responsibility and pride in saving up for the things they want by themselves. Not only is this exciting for them, but it teaches them to be independent as an individual and you won’t have to keep getting them everything all the time.
Here are some key ways in teaching your children how to care for and save their money for the things they need and want. These are sure ways in how to get your child excited for saving for college.
Use a piggy bank:
From the first moment they earn money, have them use a piggy bank. Piggy banks are great as teaching tools and fun to play with. Today they come in all sizes and shapes, from traditional pigs to soccer balls to talking banks. Teaching them to store their money in an actual place from the first time they receive money will start teaching them about the importance of money. This will show them that money should be taken care of and it is important not to lose it.
Importance of an allowance/chore pay:
Elementary age children can start learning the importance of an allowance. An allowance, or pay they receive from chores, is often a child’s first introduction with financial independence. With their own money they can begin saving and budgeting for the things they want. Help teach them what they can buy and help them realize that they can plan further into the future for things they want. Have them start paying for certain things such as: entertainment, trips to the mall, new special clothes. This gives them an automatic incentive to save for themselves. You can also have them arrange their money into slots for spending, saving, giving and even investing. Decide how much you would like to go into each category. Remember, just giving them money for no reason doesn’t teach them as much as if they have to work a little for it first.
Open a bank account:
Around ten years old or sooner, you should teach your kids the importance of a bank account. At this age, kids are old enough to have a real bank account. Make sure to explain how banks work so your child doesn’t get worried that his money is disappearing and they will never see it again. Taking your child to the bank to open an account is a simple way to introduce them to saving money. Your child will learn how savings accounts work, and they will enjoy taking their money to the bank to make deposits. You can even open an online account with them.
Set financial goals:
When your children get money from relatives from birthdays and other things, the first thing they want to do is spend it. Help your child set financial goals. Let your child set his or her own realistic goals. This will give your child some incentive to save. A good idea is to have them write down their goals, and the amount that must be saved each day, week or month to reach it. This will help your child learn the difference between short-term and long-term goals. This is a great time to talk to them about saving for college and a car and other big purchases like that. It will give them a sense of pride to know they are saving up for things for their future.
Invest their money:
Teach the importance of investing their money. Teach them that putting some of their money in an investment for a long period will grow over time and they will end up with more in the end. You can always encourage kids to save more money by matching whatever they save. You can show them how a 401(k) typically works in your very own home. Plus kids will quickly catch on that the more they save the more you give them. This will help them save even more.
You can also come up with a rewards plan. For every one of these lessons that they are responsible with then you could put a percentage of money in for them. Or, you could buy them a treat or the shirt they have been wanting. Some small rewards are not necessary, but can be a fun thing for them and encourage them to save even more.
These are just some lessons that can help in how to get your child excited for saving for college. Doing these things will teach them the importance of money and it will teach them responsibility to buy things on your own and to take care of their own needs. Help your children with these lessons so they can have the pride in knowing that they accomplished all these great things on their own.