Teaching your kids how to save properly will benefit them for the rest of their lives
Parenting is not an easy job. You have schedules and meals to make on a daily basis. Every child has separate needs to meet and you feel like there aren’t enough hours in the day to get the laundry folded, dishwasher loaded, children bathed, and still have time for yourself.
While life may seem on-the-go, all the time, it’s important to take time out of the chaos to teach important lessons that will stick with a child forever. One of these important lessons is the value of saving money. When a child understands why and how to save a little money from their small incomes, whether that is from babysitting, household chores, or a weekly allowance, they are developing a skill that they can take with them forever.
Security State Bank understands life is busy, but we hope you can use the five steps below to help your children begin saving. When the piggy bank is no longer big enough, open a savings account with Security State Bank.
Step 1 – Set an example of ways to save in your everyday life. More often than not, kids will watch what you do more than listen to what you say. Allow them to help you clip coupons and search for the lowest prices in stores. Teach them along the way why you do what you do and they may start to develop some of the same habits.
Step 2 – Discuss the positive aspects of saving. Explain how it may not be fun or easy to do, but why it will pay off in the long run.
Step 3 – Help a child create a small budgeting system for when they receive money. Try the envelope budgeting plan, where they draw pictures of what they want on separate envelopes. When they earn money they split it between the different items until they are able to make a purchase.
Step 4 – Allow them to make mistakes along the way. Spending all their birthday money at once can prove to be a valuable lesson.
Step 5 – Talk with them about how advertisements are created to target children. When shopping, discuss the packaging of certain items and how they can easily be manipulating. They will begin to think critically and evaluate the world around them.
Security State Bank is here for all your financial questions and advice. Feel free to stop by or contact us to open a savings account or checking account today!