Helping Kids Save Up

Helping kids save up money is one of the most important tasks for a parent. Giving your children the gift of financial responsibility is something that will benefit them for a lifetime.

Piggy Banks

When your children are very young, establish some kind of untouchable piggy bank in your home. You can buy one, but think about the message you'll send by making one from a coffee can, jelly jar or some other container you'd otherwise throw away. Make it extremely difficult to get into. A clear container works great because your child can see his or her savings grow. Then, only when the bank is full, can your child open it. But don't just let them go off and spend the savings. Sit down with your child and count the money to the penny. Record it in some kind of register and decide together how much your child can spend, and how much should go into a new, larger piggy bank.

Allowances

If you decide to give your children an allowance, be sure to tie it to some kind of work and make sure they follow through on the work. This will help your children, starting at a very young age, realize that money comes through some kind of work or effort.

Bank Accounts

As your children grow older, they'll be ready for their own bank accounts. You should let your children deposit their own money, but you should also do it for them. This will help them understand the concept of an employer depositing money into their accounts on a set date. It's important for them to realize that funds are not always available immediately. Then, make sure they record any deposits and withdrawals in some kind of register. They should know, on a daily basis, how much money they have in their accounts. You children should have both checking and savings accounts. The saving account should be a grown-up version of the piggy bank in that it the money is accessed for only important purchases.