Helping your children save from as early as possible can not only set them up for the future, but teaches them important planning, budgeting and money management skills – giving them vital building blocks needed throughout their lives.
Educating them on the financial areas such as the importance of saving accounts and money introduces them to general concept of finance, economy and how the world works – while instilling the virtues of patience, independence and responsibility.
- Start your children saving early
Everyone is different, but the earlier children can learn the concept of saving the better, as skills are honed over time and introducing the concept early on can increase the likeliness of it staying with them in later life.
- Explain the concept of money and saving
There are various and fun ways to engage with your children to help educate them on the concept of saving money and how to works. Playing shop with them with money involved can really help them see how to works in a real-life scenario.
- Set up your children’s saving goals
Creating clear savings goals can help keep your children’s saving on track, allow them to see the potential fruit of their labour and give them a sense of achievement when they successfully reach a milestone.
- Manage your children’s pocket money
Giving your children pocket money can give them a great sense of independence, and managing it in terms of how much and how regular can be different for everyone. Splitting it up into different areas for them can help them learn how to manage different areas of spending – e.g. treats/savings/essential items.
- Lead by example with your own savings account
Children are sponges and absorb everything – so your actions with how you handle money, your own savings accounts can be impressionable. Try to be careful in how you refer, treat and keep money in their presence.
- Let children make mistakes with their savings
As the saying goes, the only way to learn is from your own mistakes. Although it’s not ideal they splurge all of their money, sometimes it is good learn they will have nothing if they aren’t careful with it.
- Reward children for reaching consistent savings goals
If your children hit consistent savings goals, incentivize them to keep going by giving them a small bit of additional pocket money. A good motivation and lesson that
- Open a children’s saving account
A children’s saving account will give children a sense of importance, responsibility and add a ‘real-world’, feeling to their savings. The credit union, with its personable, community based, and is a perfect place for children to open their first savings account.
Take the first step to help your children save – contact us and open a children’s saving account today.