SHARK BITES – It’s a Family Affair: Teaching Savings with Your Children
Here Piggy Piggy:
I think it’s safe to say that you, someone in your household, or someone you know, had had a piggy bank in their childhood. It was fun to see that “big ‘ol” shiny bank load up in change. The more we put in the slot— the more we were saving. Of course, every weekend we opened up the bottom for the money to poor out, so we could count our stash and hit the candy store! By the way… this is a great way to teach children how to count numbers and money.
Jars Aren’t Just for Holding Cookies!:
If you are familiar with the (4) jar savings trick, then you’ll remember that each jar—preferably clear— held change: (1) each for pennies, nickels, dimes and quarters. It is so fun to hear the money “clink clank” and watch a child eyes light up, as they put it in the jar(s) and watch the change build up. Today, you and your child can take the jars to places where change machines take your coins and produce a receipt of the amount accrued to be redeemed for cash. Some banks and supermarkets carry these machines. If you use a machine at a bank, this is a great way to teach your child how to save their money even further, by opening up a Christmas fund for them at your bank. Then when Christmas season comes along, your child can buy you a present. A parent can never have too many ties or bottles of perfume. 😉
When’s a Good Age For Children To Start Saving?:
Incorporate teaching your child how to save money, once you start teaching your young one the basics of counting.
Fat Wallet: Stash That Cash!
When you think your child can understand the concept of keeping money that is in the form of bills, buy them a wallet or purse, so they may start the process of saving their cash.
Financial Responsibility: That’ll Teach ‘Em!
There’s always a lesson to be learned. Explain to your child that they are responsible for keeping their money, and if they lost any of it, it would not be replaced. Mistakes are bound to happen. But, stick to your guns, so to speak.
Start with “Play Money”: Monopolize Your Strategy
Teach your little one the basics of counting dollar bills. Use Monopoly money to help aid you in your teachings.
Allowance: Let Your Child Earn “Your”… I Mean “Their” Money: 😉
When parents start giving their child money for doing chores around the house, this will allow the child to not only earn their money, but become proud and responsible for keeping their part of the deal/task. There are many ways to teach a child on how to do a chore. For the young tikes, have your little ones put their toys up in a designated area daily. If they are at the age of beginning school, have your child make their bed every morning, or keep their clothes off the floor and placed their hamper. If they are slightly older, have your child do dishes, take out the trash, or sweep floors. Other ways to teach responsibility and earn money in the process is to have your child spend time with their dad in cleaning out the garage, or helping mom plant flowers in the family garden. This will make for great bonding, conversations, and memories.
Set a Budget:
If your child has a toy, outfit, movie tickets, skating event, etc. that they want to attend, set an amount with them, to achieve their designated goal. Perhaps agree to “match dollar for dollar”, to help their savings grow and be reached
Short-Term to Long-Term Savings: Why Certainly!
Now, we as adults know it is hard to save money nowadays. Children follow by example. So, show them that they can set a certain amount of money, to attain a certain goal, in a certain amount of time. It can be staged in short-term goals, to eventually lead to long-term goals. This will teach a child that just because the money is there— doesn’t mean it has to be touched!
Bank of Mom and Dad: Sur-“PRIZE”!
I’d be amiss if I didn’t suggest incorporating prizes in your child’s savings plan. Some banks give their patrons prizes for opening up accounts like toasters and even cash. So, why shouldn’t the ‘Bank of Mom and Dad’ be any different?! Explain that it takes time to save and reach a goal. However, when they reach their goal, they can also achieve receiving a reward for their savings efforts. Who wouldn’t want to have money and a prize?
Children Grow Up To Be Consumers:
Whether parents want to face it or not— their children will have to make important financial decisions that they will have no control over— once a child starts reaching a certain age. That’s why it is important to teach them the value of savings at an early age, so that they can make informed and decisive decisions when shopping. The mall is a magnet for teens and pre-teens to spend money galore! That’s why it is important to teach them to ask themselves questions about the things they want to purchase early in life— especially during these particular ages. As kids begin earning their money from odd jobs around the neighborhood like paper routes, baby-sitting, mowing grass, shoveling snow etc., help them to understand that although they did indeed work and earn their money, they should be smart about spending it. Have them ask themselves— “do they really need that CD, DVD, video game, pair of jeans, dress, concert tickets etc.? Or, can they live without these things, and save money for a big purchase, like their first 10-speed bike or first car? Budgeting is key— especially if it leads to their first car key! #Memories
Sharky Poll: Sharky Wants to Know:
- Have you incorporated any of the above advice with your child(ren)?
- How old were you when you had your first piggy bank?
- As a child, were you more of a saver or spender?
- What is the most memorable item you ever bought with your allowance?
Side Note: Have your child(ren) read this post and get their opinion. We can learn form them too. 😉
Remember… A penny saved is a penny earned!
~Sharky
What is “Shark Bites”? Shark Bites is a money-saving tips series here on FreebieShark that aims to help you and your family get the most out of your money. “Shark Bites” posts are both educational and straight to the point. Just another way FreebieShark is helping you save!
