How To Teach Your Kids to Save Money
The following is a guest post by Kelli from 3 Boys and a Dog.
Many children these days just don’t understand the value of a dollar. In this current age of excess, we can all take a step back and redirect our values to understand that we must have money in order to spend it.
Today, you can pick up pretty much any book, newspaper, or magazine and find an article about getting out of debt. Almost every commercial break has a bankruptcy lawyer or 1-800 number to call for help. It is time to change and that change is going to happen with our kids!
Did you know that:
* Nellie Mae reports that the average amount of credit card debt held by college graduates is $2,700.
* USA Today reports that the average college graduate owes about $19,000 in student loan debt.
Crazy, right? Imagine, that $2,700 is the AVERAGE! Thinking of having over $21,000 in debt after graduation is enough to make too many kids reconsider college! This post is 5 simple ways to help teach our children to save money so they don’t become a statistic.
The following five tips on “How you can teach your kids to save money” will help you educate them:
Teach Kids to Save Money Tip #1
Obviously, the first step is teaching the little ones to count. If they already know how to count, then they need to be taught to add and subtract. No point in wasting our money just because the cashier can’t count. 🙂
Teach Kids to Save Money Tip #2
Always explain the value of saving money. If you see your child wanting to waste their money on silly things, remind them of how to save money! Just remember, it is their money!
Teach Kids to Save Money Tip #3
Give them an allowance or pay for “a job well done” in small bills. Then, you can help them budget with their money. Example: If they buy lunch money then this is how much they need for it, this much for the football game on Friday, this much for savings, and this much for fun money.
Teach Kids to Save Money Tip #4
Teach your children to work for money! Set up a chore chart and give each chore an amount of worth. At the end of each week, pay them. Also have them ask neighbors, grandparents, and friends if they can clean the yard, wash the car, wash the dog, etc for a bit of cash. If they are 14 years of age or older, they can babysit. If they are 16 years of age or older, they can get an actual job earning money and paying taxes!
Teach Kids to Save Money Tip #5
Give them a piggy bank to store their small change. Also, open them up a savings account to put the bigger money in. When my boys get money for their birthday, they pull half off for their savings account and the other half is for themselves.
Remember, you can’t teach this in just one sitting! Be patient and take the time necessary to be sure they understand. Also, remember the best way to teach is by example. Do you waste money on silly things? How many times have you said, “Oh, it is only $3!”? Have you ever added up that $3? If you spend $3 every day, then you are wasting $1,095 per year! What could you do with an extra almost $1,100?
About the Author:
Kelli gives you tips on how you can save money homeschooling and homemaking! At Deals_3BD she posts coupon/ad matchups, the best homeschooling deals, printable coupons, and kid friendly recipes.
**Image courtesy of Morguefile.com