Tips to Teach Kids how to Save Money

Tips to Teach Kids how to Save Money

The Make Cents Foundation

3/12/20231 min read

Teaching kids the importance of saving money is a valuable life skill that can benefit them greatly as they grow older. Here are some tips to help kids learn how to save money:

  1. Set a savings goal: Encourage your child to set a savings goal, such as saving for a toy or game they want to buy. This can help them stay motivated to save and track their progress.

  2. Start small: Help your child start with small amounts of money, such as saving spare change in a piggy bank. As they see their savings grow, they will be more motivated to continue saving.

  3. Create a budget: Teach your child how to create a budget for their spending. This can help them understand the value of money and make more thoughtful choices about what they buy.

  4. Encourage saving a portion of their allowance: If your child receives an allowance, encourage them to save a portion of it. This can help them develop a habit of saving money regularly.

  5. Teach them about interest: Explain to your child how interest works, and how their savings can grow over time if they put their money in a savings account.

  6. Model good financial habits: Set a good example by modeling good financial habits yourself. Talk to your child about your own budgeting and saving strategies.

  7. Reward good saving behavior: Celebrate when your child reaches their savings goal, and reward them for good saving behavior. This can help reinforce the importance of saving money.

By teaching your child these tips, you can help them develop good financial habits that will serve them well throughout their lives.

7 Steps to Teach Kids to Save Money