Teaching Your Child to Save Money

There are a few tips to help your child understand the methods and strategies to saving.

Do You Need It? - Tell your child to ask themselves if they need the item they are about to buy or if they want it. Helping them understand the difference is important. Give them examples to help them clearly understand. Tell them that they need food to survive but they may want a special toy.

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Choosing Between Items - Help your child understand the difference between choosing two similar products. Lets take a box of noodles or an example. A brand name box of noodles may be more expensive than a generic brand. Purchasing the generic brand may be able to help you save money on your grocery bill. Let your child help you do the math to figure out how much money you will save. Tell him that for every dollar you are able to save on items, that means there is more money to do fun events with him.

Save to Earn What You Want - Help your child understand that he can save his money to buy something that he really wants. A great method is to give your child money for chores each week. Instead of buying him the toy he wants out of your own money, let him save up his money. Help him understand that if he spends his money before he gets to his goal he will have to start all over from $0 again.

Buy a See Through Piggy Bank - You may be able to help your child save quickly by buying a see through piggy bank. This way he is able to see how much money he has saved and how much more he has left to fill the piggy bank. There are also bank counters that count your money after every coin is dropped into the bank. This is very encouraging as your child will be able to see how much he has every day.

Set Up a Bank Account - Go to your local bank and set up a savings account for your child. Some banks will give your child a special prize each time he makes a deposit. This will encourage your child to make more deposits into his account.

In this economic crisis it is vital to teach your child to save money. There are a few things you can do to help your child understand the process of saving.