3 Simple Ways to Teach Kids About Saving Money
Kids are like sponges. They soak up the language, beliefs, and habits of the people around them. But there’s one thing that a lot of parents forget that their kids will absorb: financial habits.
Since an estimated 55% of U.S. adults have credit card debt, kids might not be learning the best financial lessons to set them up for future success. With these three simple tips, you can teach your children valuable habits that can help set them up for financial success.
Give Kids an Opportunity to Earn Money
It can be tempting to give children money, whether it’s as an allowance or just because.
However, giving children an opportunity to work for the money they receive is even better. Paying children for completing age-appropriate tasks, like tidying up, can help them connect the work they’ve performed with the money they’ve received. Associating working with money can also help children value the money they receive more since they had to put in effort to receive it.
Show Kids They Must Sometimes Wait for What They Want
Your kid wants the latest popular toy. It’s normal. But instead of giving in and buying the toy right away, it might be helpful to teach your kid to wait.
Even adults struggle with waiting to get what they want, so it’s no surprise that waiting can be challenging for kids. However, delaying gratification can teach children about the process of saving to afford the things they want. It can also give them an opportunity to resist the initial impulse and possibly realize they didn’t want the toy as much as they thought.
Work on Setting Goals
Setting financial goals can help children save by showing them that saving can help them work towards something bigger and better.
Whether those goals are to reach a specific total savings or to save up for something special, like a toy or trip to a local theme park, setting clear goals now can help them prepare to set financial goals down the road. While the stakes may seem small now, the lessons can carry over later to help your children save for college or their first house.
The money lessons your children learn now can send them down the path towards a lifetime of good financial habits!