Family money management is important. Teaching your kids how to manage money is the first step in getting everyone involved and on board.
If you want to make sure your kids grow up with good spending and saving habits, it is important to start early. Just like with eating their vegetables, kids need to be shown that saving money is important, and that it pays off in the end.
If your kids hate broccoli, a little bribery sometimes goes a long way, and this is the same with saving habits. If you teach them to do it, and make it a real habit, and show them that, just like with eating vegetables, saving money is good for them, your kids have a better chance of following through, and saving money during their lifetime.
Online Checking Accounts
Have your kids noticed your online checking account? If so, show them how it works, and perhaps even set them up with one. If you choose one that adds interest, even better.
Encourage them to put their allowance into the checking account, and watch the account balance grow. Then, show them how interest works. To really encourage their savings, tell them that you will match the interest each month, or, if that is not enough, tell them that for each month that they do not withdraw or use their checking account to purchase something, you will add to the balance.
See how quickly that online checking account balance rises!
You might also think of raising your child’s allowance (or giving them one if you currently do not), and asking them to save a percentage each month. Perhaps 20%? And tell them if they do save that 20%, you will match it.
Each time that they get that little bonus, remind them of what they could have in the long term. Do the math with them. Show them a year’s worth of added bonuses, and talk about what that might buy them down the road.
Additionally, show them what smart family money management means when it comes to spending. When you use coupons or buy items on sale, show them how much you are saving. Or, have your kids help you. Put a child in charge of coupons and organization, and perhaps one child in charge of reading the sale ads, looking for bargains on what you already buy. Let them do the math with you, show them how sales work and how you will save money when you purchase items on sale or with coupons.
Investments and savings accounts are always a great way to teach children about saving for the future. Tell them what interest rates are, and teach them what stocks and bonds are, and how to invest money. Setting aside some time to learn with your child is a great way to educate the entire family on investments and interest rates.
All of these ideas are great ways to instill good savings habits in your children. Good saving habits today can turn your children into adults who know how to get into the family money management routine!
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