Ways to Teach Your Kids About Saving Money

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This topic contains 5 replies, has 4 voices, and was last updated by Profile photo of CHO at KD, Inc. CHO at KD, Inc. 2 days, 5 hours ago.

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  • #4779 Reply

    Last weekend, my oldest daughter turned four and received cash from both sides of grandparents. While it wasn’t a lot of money, I’m trying to think of ways to use it as an opportunity to begin introducing money and the concept of saving. I’ve considered taking her to the local bank and opening a minor savings account, but I don’t know how much that will actually ‘teach’ her. I’ve heard about resources like Financial Peace University Jr. that are supposed to teach kids as young as 3 the importance of giving, saving and spending, but before I spent any money I wanted to see if anyone else had any experience with FPU Jr. or alternatives that may help.

    #4780 Reply

    I love that you’re thinking about teaching your daughter about money! Although I didn’t have a bank account myself until I was in high school, I do remember my parents teaching me about saving up for really special purchases. We’d sit down and think about one toy that I really really wanted and then they’d tell me how much that toy cost. Once I had that goal in mind, I’d start saving any kind of birthday money or chore money I would get and that’s how I ultimately paid for my Barbie dream house 🙂

    #4794 Reply

    Tying the savings lesson to special purchases is a really good idea! I’ll definitely try that out. Thanks, Kayla!!

    #4874 Reply

    This is great that you are starting early. I would check with your local banks and see what they have. The credit union I used to work for had a great savings workshop and a list of activities you could do at home with your child. Most importantly, I think parents often focus so much on savings that they miss the opportunity to also teach children about making purchasing decisions. I would incorporate some kind of plan when she gets older that will have her “pay bills” because too many people grow up to a shock that life comes with real bills LOL

    #4899 Reply

    You are absolutely right! I had not even considered teaching her about purchasing decisions…that’s huge! *feverishly adds that to my list of parenting lessons*

    #4928 Reply

    My kids are a little older (10, 7 and 7) and they are really starting to understand “cost.” I do think that at these early ages it’s about helping them understand the value of money and how far it does (or does not!) go.

    It’s really helpful to take them with when you have to buy a birthday present for a friend or family member so that they start to understand what all those cute, cuddly or light-uppy things cost! One of my favorite “exercises” is to talk with them about what $20 can buy: it can buy this 1 item, or these 2 items but not this other one because it’s a lot more. They start to get the idea that money is finite!

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