Teaching your kids to save

If you are looking for ways to help your kids learn how to manage money, a great way is to teach them how to save.

One method I really like is using three separate jars for three separate categories. This way your child learns that some money is for saving, some money is for spending, and some money is for giving.

This also makes it easier for the child to be able to identify how much they have for the toy they want. That is mostly their goal anyhow. It can be difficult for a child to compartmentalize or think about several goals at once. But now they can think about saving and giving without affecting the funding for their toy.

You can open a passbook savings account for a child any age. The savings book also gives them a chance to learn responsibility. They need to find the book and keep it safe in order to make deposits.

Our bank offers little gifts and toys the child can pick out whenever they deposit $5, a really nice idea. Going to the bank is suddenly suggested by the kid!

Do you have teenagers?Seriously consider opening a checking account with a debit card so they can get exposure to this responsibility. Review the account once a month with them to see where their money is spent. When they turn 18 they will be bombarded by credit card offers.

Finally, think about what you learned or didn’t learn as a kid related to money. Did you have hang ups or make big mistakes? Guess what. We all did and do! As a parent or guardian you have a great opportunity to pass on new habits.

You are never to young or old to make improvements. Enjoy!