How to Teach Children to Save Money?

I already started exposing my kids in saving money. Whatever we saved for the day, before going to bed we have a piggy bank where we put our extra pennies and even bills. I used to ask my kids to drop it in the piggy bank and explain to them why we need to do it. In time i know they will appreciate the importance of saving and will be inspired to do it too.

Hi there, Yes I have my first hand experience as to how to encourage children saving. this is different issue that e have one or two bank account on my son who is 7+ but that would not teach him saving. I have collected an earthen pot ( quite bigger ) and whenever he gets money he is suggested to put that in his own bank ( POT) Last year the pot earned around Rs. 5,000/- and this year too it is likely to save more than that. He is eager every time he gets money to put on the pot and save thus.

My older son who is 9 has just started to save money. Earlier, he would tend to spend the money he got ...most of the time it was for household needs when we didn't have change....but I didn't want him doing that either without taking it back from us. Well, he plays the keyboard and has been wanting a newer version than the one he has right now. So, we've asked him to save money for it. We give him a fixed amount for it every month...and he can also 'earn' some money by doing chores....he takes keyboard classes for 2 friends...so the money from that goes to this fund....and also little gifts he gets from his grandparents and relatives. Since he wants to get the new keyboard in a few months or within this year...he's pretty good about saving. We've also been talking to him (since he was quite young) about the value of money and if certain things we buy are really worth the money we spend on it. He's got the idea...and he's always asking us before he picks up a toy or something he wants if we've got the money...is it worth the money...or can we plan it for the next month's budget. He's also understands when we refuse to get him something he asks for at the store. The younger one is 3 now...but I can already see that I'm going to have a hard time teaching him about these same concepts..lol. He's the child who wants everything in the store...no choice...doesn't take 'NO' for an answer and still hasn't got it that one needs money to buy things.

just this week my 4 year old was able to get hold of his wallet, i gave him one when he started schooling last year, and found 2/3 of his accumulated 3 peso a day allowance for some weeks. they had been given an introductory lesson about money in school and he knows what he can do with it. sometimes when i leave him at the radio station where my husband works and he passes by some stores my child would point to a toy and when his father would shake his head he would offer his wallet and tell his dad he has money. sometimes when he really wants to go to the mall and i tell him we have no money he would get his very own wallet and say we have money anyway, this week, when he saw his accumulated allowance, 1/3 of it goes to his piggy bank then to the bank, he said he'll buy chicken nuggets once we go to the mall. i could just see his happiness and a tinge of grown-up pride that he had saved such amount. of course the paper bill didn't amount anything to him (for we know it is the clanging coins that children associate value to) and there was only one paper bill but there were a lot of coins that made his wallet heavy and this for him is so much already. as a parent i was so proud since he didn't say he'd buy a toy or the instant mcdonald chicken nuggets but he said he'd buy the ones that are frozen (and that would last for a long time since it is many and a lot cheaper than that of mcdonald's). i've also brought him to the bank a couple of times after his school hours and he had told me that this was taught in school. probably the going to the bank and putting money in savings..

i agree with you, it is hard to teach children to save money, for partent, that's a big leasson.even though,there are many books can be copy, but for different child, the result isn't as same as according the writer's mentioned on books. child have their own opinion.i think the best way is keep in touch with you child and teach them how to save money and then to let them know how to manager the money in the small matters which was happened in our daily life and changed our manner. so that they would accept and do it according. good luck and have a nice day!

I have given my little daughter a piggy bank and she saves her pocket money in it.Initially she had a problem understanding the problem of money as to why it is needed and why it is to be saved but slowly it dawned on her that the more she saved the better things she could buy with the money saved.So she started saving and I have found something inherent in her which is good -she likes saving just for the heck of it and for showing off a bit.But the end result is she retains her money and does not spend it away.

I think that the best way is being an example in saving money to them.They will follow suit.If we begin to practice what we are about to reach it will definitely work.

Here are few tips to teach kids to save money. These tips I read in an article at kidmoney.about.com Teaching children to save money isn't easy. They usually want to spend money they receive immediately. Often to encourage savings, you may need to show children the benefits of saving in exaggerated ways. Once they understand the concept you can back off a little. Match Savings: For every dollar your child saves, offer to put in a matching contribution. When they are little, you might be able to match 100%. Once they are older 25% or 50% might be reasonable to encourage them to save. Open a Savings Account: Encourage him to deposit a portion of money he earns into a savings account and track the interest earned on his account. Encourage Them to Set Goals: If they want to purchase an expensive toy, hang up a drawing of an empty thermometer. As they save their money, color in the thermometer. They'll be able to track their progress visually. Make a Wish List: Encourage children to identify fun things to spend their money on. For older children, prioritizing the list can be a helpful challenge. Display a Picture: Hang a picture of a wanted item off their wish list on the wall. If your child is saving for a special purchase, hang up a picture to remind them of what they are working towards. Save Money in Front of Your Children: Keep your own piggy bank or deposit money in the bank when you are with your children. Explain what you are saving for and your children will mimic your behavior. Help Them Spend Money: Occasionally, children will get so focused on saving their money, that they won't spend any money along the way. Help them enjoy their money by spending some on small purchases or surprising them by buying something they'd like.

I truly agree with you. I open bank savings accounts for my kids and provided them with a piggy bank. When my daughter turned 18yrs, she cleared her bank account out while away in college. I still have her empty piggy bank and she's now 26yrs old. My 19 yr old son still has his bank savings, I think he still does.LOL

I think we have to teach by observation. At an early age it is rather difficult but can be done by counting out money when they want something and you take them to the store. When they are older you start them on an allowance and make them responsible for certain items and more as they grow older. www.loveandlogic.com

Hi getbrowser, you are right, teaching the kids at a very young age to save and know the value of money is very important. They will bring it as they grow up. As young as my son is, (he is four years old), I teach him to save. I tell him, that whenever someone gives him money, don't spend it all, put some in his piggy bank. and when he likes a toy, I tell him to save money for him to be able to buy it. He listens some times, but some times he forgets. It's okay, soon he will adapt the idea. have fun!

Teaching children anything can be a challenge especially saving but it can be done. Firstly, train the child what it means to save and the rewards that goes with it. I would suggest that you start with a a "pigggy bank". Once you establish that you will be involve and model the behaviour he or she will follow. Secondly, speak about it happily. Let the child find it a pleasure to do. Thirdly, take the child to the bank where the child will have a feel about some of the activities for security. Fourthly, Carry the child shopping and link the habit of saving with the purchase of needed items. That may seem to be long but it can be done because I have done this with my children and it has worked. One is presently studying Actual Science (risk management) and the other Computer Science. It must be noted that one is fugal in spending while the other is different , he belives in instant gratification. I have brought this up to highlight that even though they were open to the same teachings one has a competitive edge while the other is like he was not taught.

am a psychology graduate and i've always loved reading. ergo: i've picked things up along the way. i teach my 3 year old what i do myself: i receive money and it doesn't get spent. it's put away in a piggy bank that can be easily opened for emergency purposes. when i spend it is usually the change that i spend. almost every month i bring him with me to the bank and i put away the money i've saved in my own piggy bank. as for his account he saw me deposit the contents of his 2 piggy banks already. he is already taught the concept of a bank in school so he knows where his money goes and why it goes there and what happens there.

For Teaching children and to save money it is not easier work we want some experience for teaching.Teaching about education,finance or business it is not easy task.First we have to teach children with our own efforts and earn money with more benefits.

actually i personally feel that u can teach only those things properly in which u have mastery , so if u save money , the same way your children will do, so if you dont keep changes properly very first think u purchase a piggy bank kind of thing for you as well as for your children, you keep your change in ur piggy bank, and provide rewards to your children when they achieve some goal , it will help them to save money too .... hope it will help u.

I was taught the saving habit when I was around 8 years old. I would get an allowance every week and then I could earn a bit more money if I did some chores. My father said to me that if I just put away a small amount of money each week, I could watch it mount up to be able to buy something I really wanted. I did this and the weeks passed by without me noticing too much and then I would count the money I saved and found it to be a very worthwhile habit. I was not told or forced to do this, it was just suggested to me what could happen.. When it did, it felt good, so I have continued it all my life... - Derek

I found the best thing for my son was to put money in an account and not to tell him.Money burned a hole in his pocket.We used to give him pocket money but he slowly stopped doing anything to earn it so it stopped.He had some money we had saved up for him just recently as he needed new clothes for year 12 books ect. He was really pleased and he has been very careful for it as he was told it took a long time to save it up and sacrifice,he has another lot to come in a years time to help him at university,he know it is coming and is really grateful.Although he has never saved much himself,he is well aware of the value of money.He is know 16 it is a difficult thing to show the value of money to a young child as it goes over their heads,no comprehension but as they get older the penny does drop and they realise what things cost and how hard it is to save up money.

My kids got their own junior savings account and I explained to them why they have bank account it's for their future. And also they have each piggybank including me just to show them that I'm also saving money so that they will follow what I did. Saving money is a learning process for them to know that they can't have anything they want in an instant. In order to have the things they want they have to save money first.

well i always tell them to save a lot so they can buy a lot of things during Christmas Season, and they can buy all the things they love with a very big discounts on it.. like toys, dresses and shoes.. so i think it really works for them, and yet they do it totally..

hello