Teaching Children about the Importance of Saving Money
Knowing smart ways to save money is very important for building wealth and having a financial foundation. Adults have to teach their children how to save money, as this is going to play a very important role in their lives. This not only teaches them how to be responsible, but also is going to show them that you need to have money in order to survive in this world.
Following are a few tips that can help set the foundation.
Grab a piggy bank
- One of the simple ways to teach children how to save money is by giving them a piggy bank. Tell your kids the goal is to fill their piggy banks up as much as possible, and highlight the idea that saving money in their piggy banks is a way that they can grow financially and take some control of their own lives by being responsible.
Let your child open up a credit union account
- Once their piggy banks are full, take them to a local credit union and open a savings account for them. Let them decide how much money they are going to deposit into that account so that they can better understand how deposits and interest accumulate in it.
Teach by example
- Children are always watching, and they learn from what their parents do. When it comes to saving money, they can learn from watching you. As you save money and inform them how important it is, it will register in their minds. They will believe that if you are doing it, and benefiting from it, then it must be something important that they need to do too.
Talk about money
- It never hurts to bring up money to your children. Tell them that money is very important and that it is very important to save up. Let them have an allowance, and stress that it’s up to them to save up for things they really want. Don’t forget to discuss the difference between needs and wants, and tell your children you always have your ears open and that you are eager to learn how to save money from them as well.
(Hint! Hint! It only costs $5 to open a savings account at Georgia Heritage Federal Credit Union! Contact us to get started in helping your children save for the future. Subject to credit approval. Contact us for additional qualification.)