The Top 7 Tips On How Kids Can Save Money And Stop Wasting Their
Allowance At The Candy Store
Your 10-year-old son has just come back from the candy store,
the day after you gave him his allowance with his pockets full
of candy. Not that there's actually anything drastically wrong
with that, as long as he brushes his teeth after & still eats
his dinner there shouldn't be any real problems - apart from the
fact that he spent ALL of his weekly allowance on that candy.
Within a few days, he'll be pestering you for more money so he
can go out with his friends, go to the pool, or buy even more
candy. You need to find some tips on how kids can save money
before this happens again!
What is the solution? Fortunately there are a few simple steps
you can take to help your child save over a thousand dollars
within a few short years, without having to ban them from going
to the shops.
1. When your child first starts receiving money, make sure they
have a piggy bank or money tin in which they can put their
money. There is no need to buy a special piggy bank from a shop
(unless you want to), it is very easy to make your own piggy
bank at home - and your child will probably appreciate it more
if they've made it themselves. You can use an old coffee tin,
jam jar, or just about anything with a lid.
2. When they are young, most of the money they receive will
probably be small coins. Let them see how their money can grow
by helping them count the money every four to six weeks. Any
less than four weeks, and the increase in the money will most
likely not be significant enough, which may actually discourage
them. Place a chart on the fridge, and use it to record their
savings, so they receive a regular reminder of how they money is
increasing.
3. Every four to six weeks, when you help them count their
money, exchange the small coins, for coins or notes of a larger
denomination. Not only will this help them see the increased
worth of their money, but it will also assist them in
understanding coin values.
4. Once they are a little older, and are receiving a regular
allowance (if you choose to give one), it's time to add another
three piggy banks, so there are a total of four. One is for
spending, one is for donations, one is for short-term savings
and the last one is for long-term savings. How your child
divides their money is up to you to decide, based on things like
your family's beliefs and your child's needs. Some people
suggest 70% spending, 10% donating, 10% short-term savings & 10%
long-term savings, while others suggest it should be divided
equally.
5. If your child is saving up for a particular item, lets say
for example a new bicycle, why not stick a picture of the bike
on the piggy bank they are placing their money in. This way they
are receiving a constant reminder of the reward they will
receive once they have managed to save enough money to buy it.
If it isn't practical to stick a picture on the piggy bank, then
try putting one on their bedroom door, or cupboard.
6. A great motivational tool is to offer to 'match' the money
they save. For example, you can offer to give them $10, for
every $10 they save. This will encourage them to save their
money even faster, as you have effectively broken the task down
into smaller steps, by offering them a reward along the way.
Another similar option is to offer to pay them interest on the
money they save. For every $10 they save, you might give them
another 50 cents. Not only does this provide extra incentive,
but it also helps to give them a basic understanding of the
concept of interest.
7. Lastly, try placing a savings chart in their bedroom, on the
fridge, or any other place where they will see it regularly.
Work out how much they will have to save each week to achieve
their goal, then each week that they save that amount they
receive a star sticker on the chart. Maybe for the first few
times, offer them a little reward when they reach the half way
mark, like a magazine or chocolate bar. The chart will be a
visible reminder of what they have achieved & what they still
need to achieve.
If you manage to implement at least a few of these seven ideas,
your child will be well and truly on the right track to an
impressive savings total before you know it. Some of these
strategies can also be used for older children, simply by
replacing their savings piggy bank with a real bank account.
For more valuable tips on how to teach your child about money
plus all the tools you need - over a 100 fun, colorful
worksheets, exciting games, activities, money charts & play
money - visit http://www.kidsmoneytips.com