Teaching your kids to be fiscally responsible is one of the greatest responsibilities you have as a parent. For those who have no idea where to start, here are a few tips that will get your child excited about saving money.
Child’s Savings Account
Did you know you can open a savings account for your child? No matter the age, you can create a bank account for your kid. You have to co-sign with them (there must be an adult over the age of 18 to open the account), but this means you and your child will both have full access to it. The appeal of a savings account is simple: your child will think it’s cool to have a bank account just like you do. It will make them feel grown up and excited about making deposits.
Set an Example
One of the best ways you can teach your kids to be fiscally responsible is by setting an example. Your children will learn to navigate their relationship with money based on what they see from you. An article written by Cameron Huddleston for forbes.com explains, “If you want your children to develop good spending and saving habits, they need to see you making smart spending and saving choices. In short, practice what you preach. And preach with consistency. Educating your children about personal finance is a process that can take time. But if you put in the effort and continuously communicate a clear message about money, you will instill good habits that will serve your children well.”
There are so many benefits to teaching your kids how to earn money. When they’re young, their experiences with money will be limited. That means it’s up to you to create and foster money making opportunities. Designate age appropriate chores (outside of their normal ones) for your children that will allow them to earn money. Have them look for additional opportunities around your neighborhood as well. It’ll keep them busy and help build their self- esteem through a sense of accomplishment.
Use Visual Aids
A child won’t likely be motivated by a verbal acknowledgement that their savings is growing. They need to physically see their progress. Create a large, colorful chart that oozes pizazz. Sit down with your children to set financial goals and track the money they save. To help maintain excitement around being fiscally responsible, make a huge deal when they meet their goals. Reward and praise them. Let them treat themselves to something small. The point is to make saving money something they love to do. As with most things in parenting, if you can find a way to make it fun, you’ll be met with a lot less resistance.
Teaching your kids to be financially savvy is an important part of parenthood. Be consistent and clear throughout the process. Find ways to make it fun. It’s never too early to start preparing your children for their financial future.