25 Ways to Help Your Young Children Save Their Money

By John Rampton for entrepreneur.com

Did you know that kids aged 4 to 14 receive an average weekly allowance of about $9.35? That comes out to roughly $486 per year. Which, really isn’t all that bad for daily chores like tidying their bedroom or helping with laundry.

Even better? It’s also been found that almost half of the average kid’s weekly allowance is saved. While kids may not have the same financial obligations as their parents, this is certainly encouraging. Saving money ensures financial independence and security during an emergency. More specifically, this habit encourages discipline and goal-planning. And, it can prevent a potential financial crisis.

With that being said, if you’re a parent, you can help your young children step up their saving game using the following 25 strategies.

Start with the basics sooner than later.

In 2001, Sam X Renick created Sammy Rabbit, a character and financial literacy initiative for children. He has been teaching kids about money through his Sammy Rabbit stories since then. It has been his experience that the earlier you start teaching your children about finances, the better. Money habits and attitudes are formed by age seven, he says, so lessons need to begin before then.

Your children should be introduced to coins and cash when they are old enough to know they shouldn’t eat pennies. Describe how money works and why it is important to save money. Rather than telling them how money works, you should show them. You can do this by showing them how you use cash.

You should always tell your children that you’re using money to make purchases, regardless of whether you use a debit or credit card. Chase Peckham, director of the San Diego Financial Literacy Center, taught his daughter and son this when they were young. On every shopping trip they took together, Peckham showed his children the receipts with the amount he had paid. “By doing it over and over again, it became habit to them,” he says. “As they got older, they started to understand. That’s how we introduced money.”

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