Back to school - get saving!
With kids already back to school and reactivating their habit for learning, now is the perfect time to start teaching them the value of saving.
It is never too early to start your kids on the right track to financial security, whether it’s just teaching them to save for a short term purchase or instilling them with a beneficial lifelong attitude towards money. We have prepared some tips which we think will help you get your kids in the right mindset.
- Pocket money. While it’s common for us to give our kids a bit of pocket money every week, it can often be used in the wrong way. Pocket money given too freely risks imparting a sense of entitlement amongst our children. Instead, it could be helpful to show that money is earned, and the easiest way to achieve this is to reward them for doing chores around the house. For example taking out the garbage could be $5/per week whereas clearing the table could be $2/per week. Weekly payments can help kids understand what a real life pay-cycle will be like instead of receiving instant money for work.
- Set goals. Make a calendar or a chart for tracking goals and embellish it with pictures and simple graphs. If your son/daughter wants a new bike then set a realistic savings goal based on what their regular income may be. Whether it be a week, a month, or more, kids will be more willing to save if they can see a tangible goal with visually trackable results. This system will open them up to the conversation about longer term savings as they reach their goals and realise the rewards that saving can bring.
- Challenge them. Set them a financial challenge when it comes to buying goods and services. If you go clothes shopping, for example, set a budget and work with them to buy everything you need for as little as possible. If there’s some change leftover then it could be a nice little reward to let them keep it for their savings. This will teach them to be conservative and think about the bigger picture.
- Banking. Last but not least make sure to teach your kids about banking. Take them with you to BDCU Alliance Bank when you have an errand or sit down at home and run them through some financial concepts. Look up or print off their transaction listing and teach them what the different terms mean. After introducing them to some of these ideas your kids should be invested enough to take interest in what banking can do for them!
We hope that these tips will help you get started with teaching your kids about banking and saving. Remember that you are the most important teacher in your children’s lives and financial literacy is one of the most vital subjects they can ever learn! If you have any questions or want to look into one of our great savings accounts, come into a branch or give us a call today.
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