Teaching Children to Save

by Charlotte Wood
(last updated February 21, 2009)

The ability to save money is such a crucial quality to develop and one that can easily influence your finances for the rest of your life. People need to learn how to save at a young age so they can develop that habit and mentality early on in life; once established, saving money won't be a hard thing for children as they grow up and take on more significant financial responsibility. Fortunately for parents, teaching the value and principle of saving money isn't that difficult and results in lifelong rewards for children.

When your children are old enough to understand what money is and the basics of how we use it is the time to begin instilling in them the understanding and desire to save. Granted, some children are more money-conscious than others and therefore more likely to save their money (some children don't even need coaxing), but if they can start out with a basic foundation for understanding money they'll be well on their way toward understanding and acting upon saving money.

Help your children open up a savings account. Go with them to the bank, help them talk with the financial representative, show excitement for them when they make their first deposit, and then continue to bring up saving money in other settings. Give your children opportunities to earn money and then proceed to ask if they plan on saving a part of their earned money. You want their saving to be voluntary because that means they actually want to save and it's more likely they'll continue to save, as opposed to forcing them to put aside their money when they don't want to. Teaching children how to save is far different from making or forcing them to save, the latter doing nothing more than increasing their savings balance while the former instills values of hard work and financial prudence.

As your children grow older, talk to them about things to save for like college, a car, or something else substantial. When they can understand the reward of saving for something they really want, they'll be more motivated to save, resulting in more saving. Learning the value of saving is priceless and a lesson that will be applied over and over again throughout your children's lives. If you can teach them early and give them a desire to save and the will to do so, they'll be well on their way toward financial independence later in life and come away from childhood with life skills that can be hard to develop in older years.

Author Bio

Charlotte Wood

MORE FROM CHARLOTTE

Get Your Laundry Whites Whiter than White

Maintaining the whiteness of your clothes can be tricky and one you always want to master. Fortunately making your whites ...

Discover More

Classic Fashions You Need

It's always good to have the clothing staples always ready at hand for whatever situation arises. You need clothes for the ...

Discover More

Massage Therapy for a New You

Massage therapy is becoming ever more popular, and you need to know the facts. Massage therapy can be very beneficial, but ...

Discover More
More Money Tips

Starting a Savings Account for Children

It is never too early to start saving for your child's education. It is also easy to open custodial savings accounts for ...

Discover More

Choosing a Savings Account

Different savings accounts flood the savings market. These mug shots of commonly seen account types can help you keep them ...

Discover More

Health Savings Plans

Ecclesiastes says that there's nothing new under the sun. That may be true, but Health Savings Plans are still an innovative ...

Discover More
Comments

If you would like to add an image to your comment (not an avatar, but an image to help in making the point of your comment), include the characters [{fig}] in your comment text. You’ll be prompted to upload your image when you submit the comment. Maximum image size is 6Mpixels. Images larger than 600px wide or 1000px tall will be reduced. Up to three images may be included in a comment. All images are subject to review. Commenting privileges may be curtailed if inappropriate images are posted.

What is 9 - 2?

There are currently no comments for this tip. (Be the first to leave your comment—just use the simple form above!)