How to teach children to save
Over the years children will receive money that is NOT part of a clothing allowance or an allowance. A bank(s) can be used to save this.
Children can earn money by getting paid to baby sit for a neighbor, washing a car, mowing a lawn. I had a sister who made pies to sell when she was in high school. My daughters, age 10, made cookies and sold them to neighbors when they wanted new and fancier bicycles. This money can be split between 3 categories: SPEND, SAVE, SHARE.
Children also receive money for birthdays and at other times in the year. This money can also be split between the 3 categories.
SHARE - this is the money to save for charity. It could be your local church, a needy neighbor, or a situation like Katrina or Haiti.
SAVE - long term savings. this is the money to save for college or for a car – one that is more than a year away
SPEND – short term savings. this is the money to spend soon.
You can choose to save a certain percentage for each category – perhaps, 10% to SHARE, 30% to SAVE and 60% to SPEND. Thus, for every dollar 10 cents to share, 25 cents to save and 65 cents to SPEND. Once the bank fills you can transfer the SAVE into a bank account.
Three different piggy banks could be used for this. A college fund bank could be the SAVE. The Children of the World is an Artist Original that could be used for the SHARE. There are so many choices on our web site – you can see what is the most appropriate one for your child.
We all realize that earning a dollar and spending that dollar in the same day is probably not the best for future financial management. What we can teach a child now can make a huge difference when an adult.