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Financial Education

Kids & Teens

Teaching Kids to Save Money

One of the most important lessons you can teach your child is how to save money. Sadly, survey after survey shows that the majority of Americans are not saving enough to be prepared for emergencies that may come their way. But teaching children to save can create a habit that extends into adulthood, setting them up for success and security. Here are some simple ways you can teach your kids to make saving a part of their daily lives.

Getting younger kids on board (ages 6-12)

Open their first savings account. Get your children into the habit of saving by allowing them to have their own savings account. When they receive money for birthdays or other occasions, talk about putting some of the money into the account. Then go together to make a deposit. This can help ingrain the physical process of saving into your child’s routine.

Play games. Board games like Life® or Monopoly® are great at teaching money management and planning to kids. Plus, it child counting coins helps create a link between these great financial habits and having fun.

Offer rewards for saving. Patience is difficult for younger children, but it can help to create rewards to encourage this important skill. Create a system of rewards for your children based on their savings habits. For instance, they may have a small toy or treat for every $20 they manage to save in their savings account.

Teaching teens (ages 13+)

Plan for long-term goals. Whether it’s saving money for college or a down payment on a car, have them make a list of goals that are important to them. Then talk about what it will take for your child to reach these goals. Break down financial needs based on a reasonable timeline and discuss how much must be saved to reach these important goals. Then keep track together as they save toward their goals.

Talk about money. We often try to shield our children from financial realities, but discussing these realities openly can be a powerful teaching tool. When it comes time to budget for the month, involve your teen in helping plan how your family will spend. Discuss how you allocate money and the reasoning behind your choices. Then pay bills and transfer money into savings together so they can see the plan in action.

Track spending together. After you’ve talked over your family budget, it’s time to help your teen take control of their own spending. Start by having them track all their spending for a month. This can be eye opening for many teens who don’t put too much thought into where their money is actually going. At the end of the month, look at spending together and discuss ways that they may want to spend better, and how they can save more for their important goals.

Saving for the future

Help your child get ahead in the savings game by opening a free savings account or certificate of deposit today! You can find out more about Rockland Trust’s savings and CD accounts here.