Learning how to save money is one of the best lessons you can teach your little one. Although you don’t want it to become something they stress or obsess about you still want them to understand how important it is to learn. Eventually seeing their savings grow and knowing that there are prizes associated with that growth can make saving money something they look forward too. One of the most important things about this process is that they have fun while learning how to save money. You can even start teaching your toddlers about a rewards system without using real money so they start learning some of these concepts at a young age. Check out some of these tips to help your kids save money in a fun way.
Use The Envelope System
Have your little one draw a picture of something they want on the envelope. Have them separate their envelopes into long term and short term goals. Also have them write the amount needed on the outside. Every time they add money to it from helping around the house with chores or birthday money have them write how much they added and subtract it from the total so they now know how much further they have to go.
A Goal Chart
This is a great way for your little one to list out all of the things they want for 6 months or the year. You can use fun stickers with the chart. Certain stickers can represent the goals and other colors can represent money saved, money spent, money needed etc. This board can sit in the kitchen or in their room or whereever they can see it all the time. This way when they make money they can look at the chart with your help and figure out the best place to use it based on their goals.
Set A Good Example
If your little one sees you making smart decisions with your money it will only motivate them to do the same. And if you are having financial problems you can always share with them afterwards how you handled it so they understand that just because things aren’t always perfect financially doesn’t mean it’s the end of the world.
Match Their Savings
If you tell your little mini me that every six months you will match their money they will be super excited about saving. They will be motivated to get that number higher. And you can also give them little rewards if you see they haven’t spent money in a while.
Suggest Ways To Make Extra Funds
You can sit down with your kids and brainstorm on ways to make money like a paper route, babysitting, dog walking, extra chores etc. This is an opportunity to introduce the concept of being an entrepreneur. They can sell lemonade or cookies at a stand at a flea market with your help. Learning how to sell items to make their money is a great set of skills to learn.