Teach Kids to Save Money

In tough economic times, making a dollar (or some change) stretch further is important — but for kids, dollars are often treated like they grown on trees or magically appear in their parents’ pockets. Teaching them that money is hard-earned, and consequently, hard-spent, takes patience and a little imagination.

Spending Plan

Show kids how a budget works by showing them your own. Even a facsimile in the form of a pie chart or graph will let them see that most of your money isn’t spent on fun gadgets but on bills, monthly payments, and even savings and investment. Remember, teaching your kids about fiscal responsibility is easier when you play by the rules, so rethink your own spending habits before you talk with them.

Create a mini budget with your kids, using their allowance as a paycheck. Use a graph to show them the difference between how much is spent, how much is saved, and how much is set aside for investment or religious offering. Keep the graph somewhere they can see it — like next to the savings bank — and stress the future rewards of having something tucked aside for making a big purchase or covering emergency expenses.

Savings in the Bank

For younger kids, creative banks are a fun and easy way to encourage savings. Victorian mechanical banks make popping savings into the works fun; or use a glass bank or “coin measurement” model so they can see how much they’ve saved.

Even though adding the coins now may be fun, tell them the best part comes later — when those coins are available for spending on something special.

Board Game Money Adventures

Play a money game with your kids to teach them more about the  “big picture” version of spending. Whether it’s a round of Monopoly that’s all about wise investing or a budget-targed game like the “Money Matters” game promoted by Crown Financial, your kids will experience making (and spending) money for investment or loss.

Focus on what’s important with your kids and help them realize that money isn’t everything — whether you have it to spend or not. Helping them keep money in perspective will help keep spending from becoming their number one priority.