Parents know that it is never too early to start saving for the future. Because many children naturally love to collect things, you can start teaching them the value of collecting their pennies when they are only a few years old. Starting early creates positive saving habits that will last them a lifetime.
Start With An Allowance
Part of teaching children how to save is also teaching them how to earn. Giving them an allowance when they first start to take on regular chores is a great way to start instilling these values. Not only do they begin to understand the value of a dollar, but they also understand what it means to have a good work ethic. A job well done often receives rewards and praise. If you choose to offer your child an allowance, start small and let them gradually increase their earnings with more responsibility.
Piggy Banks Are Still In Style
While saving money is important, going to the bank every time your child wants to make a deposit isn't practical. It's a good idea, however, to provide them some type of storage container to collect their spare change or hold their allowance until it's time to make a trip to the bank. There are automated banks that keep a running total that shows your child how much he or she is saving. Teens who already know how to manage their money can use this type of bank to save up for special purchases, in addition to growing their savings account.
Set Up A Savings Account
Parents and grandparents, alike, often open a savings account for their child as soon as he or she is born. By having an account already in place, your child can simply add to it over time. Alternatively, you can help your child set up a separate account specifically for what they earn on their own. This gives them an opportunity to identify what's in the account as money they have earned through their own hard work.
Teaching children how to set money aside is a good way to start a habit of saving that will last them well into adulthood. It teaches them to prioritize their spending and also gives them money of their own to buy things for themselves or others. It's never too early to teach them the value of working hard and saving what they earn.
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