Parents, are you trying to figure out how to get your kids to understand the value of money and how to properly manage it? We’ve put together some tips on how to teach kids to save money, so read on!
Children learn best when they’re able to observe physical actions and objects, which stands in contrast to the abstract way most adults handle money—through credit cards and online payments. Begin teaching your kids to understand money, how much it takes to buy things, and how to save it by using the jar system.
If you give your children an allowance, have them split the allowance between several jars for spending money and savings, as well as other jars of your choice, such as for money to give to charity and to invest. Give the money in cash or coins, depending on the size of the allowance. This gives them a visual representation of how their money is growing.
When you go to the store, bring along the spend jar and let your kids see the difference between how much they have to spend and how much the item they want costs. If an item is priced too high for them to buy, have them set that as a goal for their savings.
Try to pay with cash when you can so that your children will see the way cash changes hands and understand that goods have to be bought, which is less apparent to them when you pay with a card. Eventually your kids will start to grasp the value of a dollar and the importance of saving.