Saving for Kids by Lakeisha Rolle
Parents, I’ve got a question just for you! I know we’ll be talking about kids here but first, I’d like to start off with a question for the parents out there. When did you learn how to save? If not as a child, then mostly likely your answer would be as a teen, young adult or perhaps, a bit later down in your adult years (either after a conversation or after life hit you really hard and you got a reality check). When it comes to teaching your child about money, it’s important because it helps them to have a better experience with money and allows them to create a new cycle about the way money works (or doesn’t work) within your family system and eventually within their own families.
Here’s why you should teach your child how to save earlier than later!
#1 It will get them in the habit of knowing what it means to “pay yourself first.” It’s the number one money rule! Paying yourself first is simply placing an amount aside from any other money you will be using for things such as toys, games or candy.
#2 If done consistently, saving will help your child to understand the importance of planning, allocation and growth when it comes to earning, saving, spending and giving (charitable donation). No worries, I’ll explain how this all works below.
Planning: Help your child set a small goal of how much money they would like to save over a period. Anywhere from several weeks to a few months is fine!
Allocation: If your child receives an allowance or money for assisting with small jobs, help them to split their money between the 3 basic categories to help them learn how to organize their money between spending, saving, and giving (tithes, donations, charity). Here’s an example of a simple allocation format you can use: 50% for spending, 30% for saving, and 20% for giving.
Growth: Encourage your child to watch their money grow over time. It’s important that they understand that the longer the money stays in the
#3 Saving can help your child to become more organized with their money. Going back to the “allocation” section, parents are encouraged to set up a total of 3 jars. Your child should have one jar for saving, one for spending and one for giving. After they’ve become more organized with their money, this may also encourage them learn about other ways they can make money and save more money toward their own personal goals.
Saving doesn’t have to be as boring as it may sound (if this applies to you). There are many ways to make saving money fun, especially when there are children involved who love to spend money! Here are a few ways parents can start saving as a family and create a simple saving system for everyone to participate and enjoy.
Incorporate the use of savings charts and containers to keep a record of how everyone is measuring up.
Schedule bi-monthly family meetings to see how everyone is progressing with reaching their goal.
Use decorative savings bottles and jars to store money. Make it a fun family craft session! (Contact us to learn more about customizing savings jars and containers for your family.)
Offer incentives for children to save and give money. For example, consider matching the amount they were able to save or give. Another option would be to add an interest component to their savings and reward them for being consistent.
Whether you learned about how to save, what to save, when to save and how much to save as a child, teen or adult…here’s the bottom line. Don’t wait until something drastic happens to teach your child about the importance of saving money. Make a commitment to change the narrative so that your family’s “money story” has a happy ending.
