It can be a challenge to get your kids excited about saving money. Teaching good money habits, though, starts at home and it starts early! Contrary to popular belief, your child will be more financially sound with continued math education and regular money discussions than from an academic finance curriculum. That’s good news for parents, who can promote good money-related behavior in simple and age-appropriate ways.
For younger children, start with simple concepts that they can understand. Explain the difference between buying, borrowing, and saving. You could even use the three jar method to teach about spending, saving, and giving. Discuss some of your buying choices during a trip to the grocery store, or if the child is old enough, encourage them to compare pricing on products and help you purchase certain items.
Allow your child to count out money and hand it over to the cashier to see how money is exchanged. Understanding the output of money will help them grasp the concept of saving it! Then, when it comes time to decide what to do with gift money from a birthday or Christmas present, discuss options of spending or saving it.
Having an old fashioned piggy bank at home where your kid can watch their money accumulate can make saving money more fun! Discuss with them a special event or purchase for which they are saving. As your child grows, they can even intentionally put money away for college, a car, or another major purchase.
Once the piggy bank is full, bring your child to Mid-Minnesota Federal Credit Union for a special “big kid” trip! Beginning as early as kindergarten can be a great time to open a savings account for your child. Taking trips to the bank monthly or annually can become a fun, routine date with your kid.
Here at Mid-Minnesota, we can help your family save. Check out our savings options, particularly our Term Share Certificate for kids under 18.