A Penny Saved...
Saving money can be a challenge.
And as hard as it can be for some adults, imagine trying to explain the concept to a kid. Especially to one who may just be getting his first taste of his own money - whether through an allowance or odd jobs.
But that's where starting kids off on the money-saving habit becomes even more important.
Kids should think of saving as one of the necessities that they "spend" their money on. That helps instill in them the habit of saving at the earliest ages. And habits learned young are often ones that carry forward throughout life.
Putting it in their terms
But explaining to a child that they should be saving money because it's good for them can be like trying to get them to eat vegetables. There just aren't enough reasons or doses of common sense that are really going to deliver the message.
And, it can be hard to explain to kids why they need to save for the future. Especially when the future to them may only mean next week.
So you need to put saving into their terms. That can mean using math games or examples to demonstrate growth and compounding. It can mean matching their savings if it's in the family budget.
Saving money also means getting to see the rewards of delayed gratification. For kids, any delay can seem like forever. So savings goals should be set according to age.
As kids get older their savings goals can be greater - both in amount and in how long it takes to reach them. But they still need to be realistic and appropriate for the age.
That's where our resources can help. Check out these pages to get help on:
- Figuring out your kid's money personality. Knowing whether your kid or teen is a spender or a saver is a basic part to being able to teach them good savings habits.
- Getting your kids to save.
- Saving ideas. Focusing on these key concepts will help make savings real for your kid or teen.
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