How to Teach Your Kids About Saving Money

Teaching your kids the ways of the world can get extra tricky when they get older and have to learn how to be smart about their finances. It’ll be up to you, their parent, to help prepare them for what’s out there, and to teach them how to save money. Here are a few ways to ensure you do that properly.

Encourage Them to Get a Job

Encourage your kid to get a part-time job. This may not be a direct way of telling them to save money, but indirectly this will teach them the value of hard-earned cash. When they realize that money doesn’t grow on trees, but rather comes when they work hard for it, they’ll be more inclined to hold onto it for later.

Three Banks

Tell your kid to create three separate “banks” and to label them “Saving”, “Spending”, and “Sharing”. Teach them the importance of learning when to allot which money into which category. This will help them understand the value of being conscious about financial transactions.

Set a Good Example

Remember, kids learn by observing, so be a role model when it comes to saving. Let your kids see you save for something special or make wise money decisions—instead of just spending everything that comes your way.