Five Activities to Help Kids Develop Good Saving Habits

Money has the potential to influence everything in our lives, good and bad. Children watch their parents and pick up signals about the meaning of money and its impact on the family. For many people, money is an uncomfortable subject to discuss, but finding fun ways to teach children about money, especially the importance of saving money, can be rewarding for everyone. The activities below offer some different approaches parents can utilize to help their children develop the good habit of saving money.

Establish a place for them to save – a piggy bank, checking account, or savings account.

No matter the age of your children, encouraging them to save at least some portion of the money they receive or earn helps them establish good money practices early. Dropping coins through the slot in a piggy bank is very exciting for young children. For older children, the responsibility of maintaining a checking or savings account provides good training for adulthood and thriving in the "real world."

Go window shopping.

This is a great one for talking about value. As you are perusing items, take the time to look at the cost and talk about if it is worth it. Discuss how long it would take to earn enough money to make the purchase. In certain instances, you might consider an agreement with your child to purchase the item and then set up a specific payment plan for her to pay you back. As the parent, you have to have the discipline to enforce the details of the payment plan and execute the consequences if the terms are not met.

As a family, select an activity or item you would all enjoy and start saving as a group to collect enough for the purchase.

Some families use this activity to save for a vacation or a particular group activity. Collecting the money in a large clear jar is a great visual and reminder of the progress you are making toward your goal. You can affix a chart on the outside of the container showing the amount you need to save and have regular counting check-ins to update your progress. The group effort and sense of accomplishment when you reach your goal add to the excitement of the celebration.

Offer saving incentives.

This is an especially good money-saving exercise for older children. It provides a reward along the way as an incentive to keep going in their effort to save enough money for their desired purchase. For example, let's say your son or daughter wants to buy a particular computer game for $60. You can incentivize the purchase by agreeing that when they reach the $50 point you will chip in the remaining $10. This makes the saving process a little less daunting.

Consider setting up a chore list with an allowance attached to it. When your child receives the allowance have him put a certain amount in savings.

A chore list is one avenue for helping children learn to accept responsibility, and many times it teaches basic living skills in maintaining a home. Plus, it's helpful. No matter the dollar amount you attach to the satisfactory completion of the chore list, require a certain portion of it to be put in savings.

Parents need to set a good example for their children. Talk about the value of saving money and the importance of planning for unexpected occurrences. Encourage your child to set a savings goal. A good parent also has to let their child make mistakes with their money and learn from them. These are all life lessons that you can start teaching early. Developing the habit of saving money is a skill that will serve you and your children well.