How to Teach Kids to Save Money

It is important to teach kids to save money. The fact of the matter is that the younger a child is when she learns how to save money, the more likely she is to actually save money when she gets to be older. Fortunately, there are things that you can do to teach your kids how to save money.

One thing that you can do to teach kids to save money is to help them with their allowance. When they get their weekly allowance, for example, you should encourage them to set aside a small percentage for savings, and perhaps a small percentage also for charity. This will teach kids how to save money, and to get them in the practice at a young age of taking money off of the top to save.

There are also games that you can play with kids to teach them to save money. There are software programs, for example, that help kids learn about money and about the value of saving. There are even software programs that will teach kids not only how to save money, but also how to create an entire budget.

Another way, and perhaps the most important and effective way to teach kids to save money, is to save money yourself. Make a point of taking your kids with you when you go to put money into your savings account. While it may be easier for you to set up a direct deposit to automatically put a portion of your paycheck into a savings account, in the long run your kids will learn much more about how to save money if you take them with you every two weeks to the bank and deposit money into your savings account.

You can combine this trip with the first idea, as well. Instead of having your kids put their savings into a piggy bank, take them to the regular bank and have them put the money into savings there. Most banks offer free savings accounts to minors that your kids can take advantage of.