Building good saving and financial habits early can help your children throughout life.

Teaching kids about money is an important skill that can set them up for success with finances. Parents and caregivers have the opportunity to help instill good habits early on. Here are some practical tips you can use when teaching kids to save money.

1. Start Early: Begin teaching money concepts when your child is young. Even preschoolers can grasp basic ideas like saving and spending. Use a piggy bank or a savings jar to introduce the concept of saving with cash.

   Wants vs. Needs: Help kids distinguish between wants and needs. Explain that needs (like food, clothing and healthcare) come before wants (like toys, games or gadgets.) Reinforce and reward them when they prioritize their spending well.

   Set Savings Goals: Help your child set specific savings goals. Whether it’s saving for a toy, a game or an ice cream cone, having a goal can teach children there is a purpose to saving.

   Provide a Place to Save: Piggy banks are great, but opening a Young Savers account can help involve them in the process of banking early. Teach them how interest works and show them how they can grow their money.

   Make Mistakes: Nobody is perfect. Allow children room for mistakes. If they spend impulsively and regret it later, you can use that as a learning opportunity. Talk with them about what went wrong and how they can improve next time they make decisions.

Remember, it’s never too early to teach your kids about money, and it’s an ongoing, years-long process. Rome wasn’t built in a day, and you won’t give your kids a complete financial education in a day, either. But starting with simple steps now can pay dividends later - pun intended.

Sources:

https://www.forbes.com/advisor/banking/savings/ways-to-save-money-for-kids/

https://www.forbes.com/sites/edflores/2023/09/20/an-effective-way-to-teach-kids-about-the-value-of-money/

CBS News: https://www.youtube.com/watch?v=kl6DLeYvBXI

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