Teaching Kids To Save Money

    Published: 06-16-2009
    Views: 18,481
    Financial planning professional and member of the Financial Planning Association®, Marguerita Cheng, CFP®, CRPC, offers some advice on teaching your kids how to save money, and gives a few tips on age-appropriate methods for saving.

    Marquerita Cheng: Hi! My name is Marquerita Cheng, and I am a member of Financial Planning Association. Right now I am going to talk about ways you can teach your children to save money. One of the best things you can do to help your children become financially stable as adult is to instill in them the habit of saving money. Here are some suggestions.

    First, Set savings goals. Show your kids How to set a goal for their savings. Young children do best with concrete goals that can be reached in a short time. Find a picture of something your child wants and hang it on the wall. Help them shop for the best price to show them how much they will have to save each week to reach their goal, and mark off the weeks on a calendar.

    Older kids can write down their goals, but the process is the same. The Financial Planning Association has a worksheet on its website, which will show you a child how to set a goal and make a plan to reach it. Next, Have a place to save? Financial situations can change quickly. For that reason kids should get into the habit early of putting something away every time they get money. Whether it's a Piggy bank, an envelope labeled "Save" or savings account. Help your children have a place where they can save their money and keep track of it. Make sure they understand that this money for reaching a goal, not for spending immediately.

    Finally, make sharing your goal. Many families encourage their children to allocate, a part if their money for a charity or special cause the child chooses. Ask how much they want to donate and provide a separate Piggy Bank or an envelope labeled "Share," for this money.

    With these few tips, you will be able to get your kids on the right track to saving.