How Do You Encourage Children To Save Money?

Discussion in Savings & Investments Plans started by Denis Hard • Jul 22, 2015.

  1. Denis Hard

    Denis HardWell-Known Member

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    Kids should learn from their parents everything they need to know about saving because how well they learn to save is what will determine how they'll manage their money in future.

    Since they have to learn the value of money while they are still quite young should parents force them to save a percentage of their allowances? Or are there better ways to encourage children to save money?
     
  2. paultrump1

    paultrump1Member

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    How about get them a piggy bank ? It's good to have a habit of saving money.And also they'll learn to have a good plan for work,or other things on the list .
     
  3. thenextGeek

    thenextGeekActive Member

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    My parents trained me in a sense that they didn't give me every toy that I wanted when I was a child. Whenever I wanted something, my mom would tell me her budget and I'm not allowed to go over that so I'd walk for hours looking for something that I like and also goes within the budget the gave me.

    That gesture taught me the value of money. That if I want something, I need to work hard or wait for the right time to buy what I want. I was also already fond of reading when I was still a child and I read all the financial books that my mom bought so that also helped me become more financially literate.
     
  4. Dora M

    Dora MWell-Known Member

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    I'd say turn it into a game, make it a fun thing to do. A piggy bank is a great start. Even more interesting would be if you help your kids to create their own piggy bank. It will be something deeply personal to them, and they will love "feeding" their piggy coins. Or you could play a game where every time kids use a swear word, or they don't clean up their room, they have to put a coin into their piggy bank, instead of buying sweets with it.
     
  5. Theo

    TheoWell-Known Member

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    First of all children need to understand the value of money before they can save it. It's all good and well them saving it, but until they understand the cost of things then it's senseless.

    My friends teenage sons helped us out one weekend at a show selling phones. They saw the takings at the end of the day and realized with all the hard work, it wasn't enough to pay a single person a daily wage. It made them appreciate the value of money from then on. I think if kids do chores for money then they will save it more than money given a gift.
     
  6. Zyni

    ZyniWell-Known Member

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    We usually had our children same some of whatever money they received and put it away. They were allowed to spend some of it, but not all. Then, when they wanted something, we'd ask them if they wanted it badly enough to spend their own money to buy it. This usually made them think long and hard, unless they really, really wanted whatever it was.

    This was especially true if they had actually earned the money through extra chores or tasks. If the money was a gift, they were more likely to spend it than if they'd had to work for it and earn it themselves.
     
  7. GemmaRowlands

    GemmaRowlandsActive Member

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    I always encourage children to learn about the value of money, and if they want something in the future, they will have to save up for it. I like to reward children for completing chores, so that they know what their actions and time are worth, and I also make sure that I ask them to save a certain proportion of the money that they earn. The sooner that lessons are taken, the sooner they will get into it, and that can only ever be a good thing!
     
  8. thenextGeek

    thenextGeekActive Member

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    Using a game to teach children the value of saving is a great way to improve their financial literacy. I mean, everything that's being gamified is good right? There's this game by Robert Kiyosaki that teaches adults how to become more financially literate. I think it's called Cashflow Quadrant. Monopoly is also a great game for kids.