Educating Children to Save Money

[cheapbastard]

I was wondering what people do to get kids interested in saving. I believe that saving must be taught. There are so many people out there that do not know how to save, I can't help thinking that maybe their parents have been remiss and did not teach them to save.

Here is what we do. We don't give an allowance per se, we give our girls points when they get things right. The points are redeemed for 10cents each. Each week they get about $5 to $10. Each daughter has a bank account. (They are 6 & 8) They must put half their earnings for the week into the bank account for savings. The rest they are allowed to spend as they like. Hopefully this will get them into the habit of saving. I hope it works.

That is what we do. What do others do?

[PrincessPerky]

our kids recieve oodles of gift money, we help them decide weather to use it, save it or give it...there is no set formula, so long as all three options are used frequently we are happy.,

for actual in house savings we discuss why we do some things, like cloth diapers, turning off lights, line dring some things, ect.

I also started a new house phrase 'you don't need it you want it' noticing the difference between needs and wants is rather important to being able to save vs spend for the moment IMO.

[PRICEPLUS]

I try to give my daughter the education about money that I never recieved. She has a savings account, CDs, and stock. I don't push it. I just try to impress upon her that it is better to save than to spend in most instances.

[boomeyers]

I hate to say it, but sometimes my kids have more money in their savings account than I do!!!

[Bluezy]

Hehe! That's a good thing Boom...your want your babies to go beyond what you can do! Cheers!

[Fern]

I odn't have kids, but i do agree with you that there is a real void educationally in kids never having an opportunity to be taught about money, whether in the schools or, apparently, by their own parents. Teens are so vulnerable, becus of peer pressure, etc., to to all the marketing come-ons in the media.

[PrincessPerky]

We pulled out the 'box of coins' mainly cause I found mine from europe and wanted to combine, the kids got a chace to see coins from other countries (DH has some, his father gave him some, lots fo cool coins) and while there I peeked at the bonds. DS got some adding practice to see how much he has, DD got some counting practice (I held up fingers for her) and they both got an intro into what they did. (put some in like loaning money to the govt..get more back later..much later)

We talked about how it will come in handy when they are ready to buy a house, way far in the future. DS asked' wheres yours daddy?' we said Daddy already has a house! (coursedunno what all of our bonds went to, it certainly wasn;t the house!)

The goal is for the kids to think of that money as unusable, as specifically for a house.. rather than for them to use as they see fit..which it tecnically will be, but we want the back of their mind to be thinking..I could use it for a really good down payment)

[nanamom]

When my first two were little they had to tithe 10% (Charity of their choice for the year ) and save half fo what was left and could spend the other half. That was on earnings. Their allowance they tithed and I am sure we had them save some but can't remember how much.

[sakigt]

My parents really never taught me, but I saw how poorly my mother lived and decided I didnt want to live like that. I didnt have a specific goal but I just worked and went to school. Worked out well, I think.

[miclason]

Ale is saving to open her Ahorrito account (children's acct at the Banco Salvadoreno)...they have a special window for it and, the savings account booklet, instead of being plain blue with the bank's logo (a squirrel), has lots of colors and a cartoon squirrel and friends...

[PrincessPerky]

"Children have more need of models, than of critics."

~ Joseph Joubert

I thought it was a pertinent quote..umm no idea how to spell that word! (pertaining to the topic at hand.....on topic! thats it, I can spell 'on topic'!)

[Ima saver]

Well, I certainly tried to be a model to my daughter. I opened a savings account for her when she was little. All birthday and christmas money went in it. She got to spend part of her babysitting money and save the rest. When she got a job, I made her put half the money into the bank. When she got married, she took out all of that savings, ALL of it, to buy a car which got wrecked 3 months later.
She has never saved a dime since then and probably owes me about $50,000. Since I no longer pay all her bills, or lend her money, I never hear from her anymore.
So, you can try, but you can not always teach your children to save money. You just have to do your best, and I think I did.

[PrincessPerky]

Sometimes (and I am speaking of my own parents) what you think you did, you didn't...

I know what my mom thinks she did, and I remember a few lessons that she did, but for the most part, we had no money, hard to learn what to do with it if you have none! No allowence, and except for a short time with a paper route, no money to tithe, budget, or save. I remember a couple discussions on tithing, and how it was a catholic thing to get the priests more money, don't think that was what she meant to convey....(least isn't what she thinks now!) I remember some savings during the paperrout years.....no idea where that money was when I moved out on my own though....I remember some budgeting/planning things..those I use. But for the most part, we had no money so we didn't tithe, save or budget.

There are some skills involved in having no money, and I used those skills when I lived out of my car......I think mainly I learned, do without, you'll still survive.

But when I was a DINK (dual income no kids) I didn't really spend much energy on saving, or paying things off as fast as possible, I ate drank and was merry couple years (and three kids later) I am now back on track.....with a bit more balance, though I think I sway between extream do without and wanting to splurge.

[Ima saver]

I grew up really poor after my father died and watching my mother scrimp and do without, taught me a lot. My mother knew nothing about handling money.

[Thrifty Ray]

Many credit unions have links designed for teaching children about money and saving.

Usually there is a link for child, middle school and high school/college age.

I will try to find some good ones...they have GREAT information.

[cbmeeks]

Educating? Children? Money?

Educating: Every word out of my mouth is assumed to be stupid which is then ignored.

Children: Yes, I have three.

Money: Children do not understand money. You can't understand something you don't have or never earned.

cbmeeks

[notmadeofmoney]

Hi,

I am new to this board (just joined today) and this thread caught my eye. My husband and I have 3 kids and we are working on teaching them about money. In fact, I just wrote about this very thing on my blog the other day. Anyway, in our house when a child turns 3 then they begin to receive an allowance. It is a very small amount and is really done so that we may model money management to the kids. Dad is the "paymaster". The kids each have 3 jars. One jar is labeled "tithing", one jar is labeled "saving", and the last jar is labeled "spending." When it is allowance day, Dad takes each child separately, pays them their allowance, and then helps the child to divide up the allowance into the correct amounts for each category of tithing, saving, and spending. The kids really enjoy this and like dividing up the money and putting it into the correct jars. Another benefit we have found is that it has enabled us to see our children's natural "money personalities" at an early age. Our oldest loves to spend, our middle child prefers to save everything, and the youngest just wants to save up until she can buy the "big stuff", you know, like a cabbage patch doll.

[Broken Arrow]

I don't have any sophisticated or set ideas yet, but if they are young enough, I would like to invest it for them, and when they are old enough, I would like to return that money back to them through dollar-for-dollar matching for the important expenses in life.

[cschin4]

It is their money. I do try to guide them or discuss purchases with them. I point out what they could buy instead, what they could save for and how much things cost. They are getting a good idea on the cost. My oldest son likes his money for spending on smaller things, like getting a coke at the ball field, food, smaller toys, etc. My younger son is a saver and keeps his money until he finds exactly what he wants. But, when he finds, what he wants he has no problem spending for it. He usually buys a video game he has waited for. So, I don't think either is right or wrong, but they do both have different spending and saving styles.

[PrincessPerky]

Originally Posted by cbmeeks

Educating? Children? Money?

Educating: Every word out of my mouth is assumed to be stupid which is then ignored.

Children: Yes, I have three.

Money: Children do not understand money. You can't understand something you don't have or never earned.

cbmeeks

Well the teen thinking adults are stupid prolly will never change (but you can hope they outgrow it, and then the mental playback of what you said might help, might..)

but the no money you can help, you could stop buying things for them, and suggest a job, or you could go with an allowance (course your spouse would have to be on the same page)

Having no money it is hard to learn about, One reason I like that the kids get so much in gifts, gives them something to learn with.