One of the most important lessons we can teach our children is the value of money and the importance of saving it. Saving money not only helps us achieve our goals, but it also teaches us self-discipline, patience, and responsibility. Many adults wish they had learned these skills earlier in life. That's why it's so important to start the process early on and teach our children the value of saving from a young age.
In today's fast-paced and consumer-driven society, many people are unable to live within their means and fall into the trap of living on credit. This is where the importance of teaching children to save money comes in. If we can help our children develop good financial habits and instill the importance of saving into their daily lives, they will be better equipped to handle their finances in the future.
Teach children the value of money
Teaching young children about money is important, and a great first step is to teach young children how to count coins. Coins come in different sizes and colors, and some are worth more than others. Start by introducing them to the different coins and their values, then practice counting to different amounts. Encourage them to save their coins and take them to the bank to deposit in a savings account. To make coin-counting fun, check out our coin counting worksheet below.
Cents Sense Work Sheet
Once your child has mastered counting money, teach them the value of money by discussing the cost of items and explaining how long it takes to earn the money to buy them. We can also encourage our children to compare prices and find the best deals, which can reinforce the importance of making informed financial decisions. Make it fun with games and real-life scenarios, like playing store or paying for a treat at a store. Your child will build confidence and be able to handle money with ease.
Encourage children to set savings goals
One of the best ways to get children interested in saving money is to help them set goals. Goals can be big or small and should be specific and achievable within a certain period. For example, a child could set a goal to save $50 for a new video game within the next three months. This not only encourages children to save money but also teaches them the value of goal-setting and delayed gratification.
With their chosen "big ticket" item in mind, work with your child to figure out how long it will take them to purchase the item saving their money. By taking this approach, kids will develop financial confidence and plan their path to success. Encourage them to save $50, with our savings challenge sheet below that can help them track their progress.
$50.00 Saving Sheet
Saving money doesn't have to be boring! Tracking savings with a savings sheets is one of many ways to make saving money more enjoyable for children. By creating ways our children can watch their savings grow, or by offering incentives for reaching savings goals, such as a special outing or treat, are all simple ways to motivate our children to save.
Importance of Savings Accounts
Teaching children about compound interest is a great way to help them understand the importance of saving money. Compound interest can be explained as earning interest not only on the initial amount saved, but also on the interest earned over time. This means that the longer you save, the more your money will grow. It's a powerful tool for building wealth, and introducing this concept to children at a young age can help set them up for financial success in the future.
Try the Double Your Penny Challenge to teach your teen about the magic of saving early. As they watch their money grow, they'll learn that saving for the future is easier than they thought.
Double Your Penny Challenge
Set a good example
Children learn by example, and if we want them to develop good financial habits, we need to set a good example ourselves. We can do this by being open about our own finances and demonstrating good savings habits ourselves.
Teaching our children to save money is a crucial skill that will benefit them throughout their lives. By teaching them the value of money, encouraging them to set goals, making saving fun, learning the concept of earning interest on their savings, and setting a good example, we can help children develop good financial habits that will serve them well in the future. So, start teaching your children to save today, let's work together to help your child build a strong foundation for financial success! Start building their foundation today by opening them a Kids Club Saving Account.
Kids Club Savings Accounts, require an opening deposit of $20.00.
Savings activities were designed using lessons from the American Bankers Association, Teach Children to Save Education Foundation resources.