8 Ways to Encourage Your Child to Save Money

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Teaching children to save money isn’t easy because they usually want to spend money they receive immediately. To encourage children to save, you need to constantly show them the benefits of saving in several ways.

Try these tips to encourage your child to save:

1. Match Savings

For every amount your child saves, offer to put in a matching contribution. When they are little, you might be able to match 100%. Once they are older 25% or 50% might be reasonable to encourage them to save.

2. Open a savings account

Encourage him to deposit a portion of money he earns into a savings account and track the interest earned on his account.

3. Help them to set goals

If they want to purchase an expensive toy, hang up a drawing of an empty object. As they save their money, color in the object. They’ll be able to track their progress visually.

4. Give non-monetary saving rewards

Young children may not understand that 1000 naira tomorrow is better than 500 naira today. Consider rewarding children with things special to them for saving their money: stickers, toys, and special outings can be helpful.

5. Make a wish list

Encourage children to identify fun things to spend their money on. For older children, prioritizing the list can be a helpful challenge.

6. Display a picture

Hang a picture of a wanted item off their wish list on the wall. If your child is saving for a special purchase, hang up a picture to remind them of what they are working towards.

7. Save money in front of your children

Keep your own savings or deposit money in the bank when you are with your children. Explain what you are saving for and your children will mimic your behavior.

8. Help them spend money

Occasionally, children will get so focused on saving their money, that they won’t spend any money along the way. Help them enjoy their money by spending some on small purchases or surprising them by buying something they’d like.

Source: About