How To Teach Children About Saving & Budgeting
It’s never too early to begin teaching children about the importance of saving and budgeting. Understanding the ins and outs of budgeting and saving is a skill that will empower children as they grow.
- Award kids for chores done around the house. Set an amount per chore and pay for each chore completed. Doing dishes and taking out the garbage are great chores to start with.
- Show and tell children what items cost. When buying something, tell the child what it cost.
- Make sure your child understands where money comes from. It requires hard work and dedication.
- Older children could benefit from opening a bank account where money earned can be deposited.
- When a child has saved a little money, emphasize the importance of not spending it right away (especially on non-essential items). Make sure they understand wants vs. needs.
- Dismiss household bills like cable and food. Explain the costs.
- Lead by example. Take your child shopping and explain why you buy what you buy and the costs associated.