The Update

Teaching Kids About Saving Money

Teaching kids about saving money is a valuable life lesson that sets them up for financial responsibility in the future. Here are some effective strategies to instill good saving habits in children:

Start Early

Introduce the concept of money and saving as soon as children are old enough to understand. Use simple language and examples they can relate to, such as saving coins in a piggy bank for a special toy.

Set Savings Goals

Help children set realistic savings goals based on their interests and desires. Whether it’s saving for a new toy, a day out, or even for college in the future, having a goal encourages discipline and perseverance.

Use Visual Aids

Utilize visual aids like charts or graphs to track savings progress. This allows children to see how their savings grow over time and reinforces the benefits of saving consistently.

Provide Allowance with Responsibilities

Consider giving children a regular allowance tied to age-appropriate chores or tasks. This helps them understand the connection between work, earning money, and saving. Encourage them to allocate a portion of their allowance to savings.

Lead by Example

Children learn by observing their parents’ behavior. Demonstrate responsible financial habits such as budgeting, saving for goals, and avoiding impulse purchases. Involve them in family discussions about money to demystify financial decisions.

Encourage Delayed Gratification

Teach children the importance of patience and delayed gratification. Discuss alternatives to immediate spending, such as waiting for sales or comparing prices before making a purchase.

Open a Bank Account

When children are old enough, consider opening a savings account in their name. Take them to the bank to make deposits and show them how interest can grow their savings over time.

Celebrate Milestones

Celebrate achievements when children reach their savings goals. This reinforces the positive behavior of saving and motivates them to continue practicing good financial habits.

By incorporating these strategies into everyday life, parents can empower their children with essential financial skills that will serve them well into adulthood. Teaching kids about saving money not only fosters responsibility but also sets the foundation for a secure financial future.

RGCU Kids Savings Club Accounts

At Rio Grande Credit Union we want our youngest members to learn about savings and financial responsibility at an early age. The Kirby Kangaroo Savings Account is exclusively for kids under 13 years old. The idea is easy: Save money and get prizes. The more money you save in your account, the bigger and better the prizes are.