Teaching kids to save their money is no easy task. I have first-hand experience, raising five-year-old twins, Tommy and Brooklyn.
They’ve developed other good habits like brushing their teeth (reluctantly), combing their hair (with minimal success) and making their bed (hopefully without whining) – so why not good money habits?
Just like striving to perfect the bedtime routine, good money habits and financial literacy need to be established at a young age. Children are naturally inquisitive, so it’s best to take advantage of teaching opportunities when they’re young and impressionable. As a parent, you can start early to teach your children important financial lessons and help them build good spending and saving habits. Have fun with it!
5 Fun Ways to Teach Kids About Saving
- Play store with your children and use pretend money.
- Use a piggy bank – this is a simple and tangible way to show them how they can save money (until they are ready to join Libro, of course!)
- Create a job chart at home and allocate different monetary values for different chores – they’ll be buying the latest stuffy in no time!
- If they receive money for their birthday or a special occasion, teach your kids about money management by encouraging them to save half and spend half.
- Give a five-dollar bill to your children and make a stop at a community garage sale, farmers market or local thrift shop and let them pick out an item or two. Remind them they only have five dollars to spend!
These are interactive, fun ways to teach your children the value of money and its importance. I asked both of my kids why they think money is important. This is what they said:
“Because it helps you get a house and buy the stuff that you need…like groceries.” – Brooklyn
“Because you need to buy food and clothes.” – Tommy
Want to learn more about teaching your kids financial literacy?
At Libro, we have fun and useful resources for young children to learn about the concept of money.
- Kids’ Savings Calculator: This is an interactive way of helping children and teens understand how long it will take to save for a new purchase or experience.
- Bill’s Beakon Newsletter: This is Libro’s fun, quarterly newsletter for kids.
- My first budget worksheet: This sheet will help your kids set a savings goal, understand how long it takes to save for it, and outline ways they will earn money.