Showing your little ones the meaning of saving enables them to carry on this positive behavior into their adult lives. Below are some helpful tips on how you can encourage children save money.
Become a good role model to them. Provide a coin bank for yourself as well as for your little ones. Show how every loose change can add up to huge amounts. While telling them the value of saving for the future, see to it that you practice the same thing to be a good example to them.
Illustrate monthly budget - how it works and why it's needed. This is a simple yet effective way on how to teach them about finance. Discuss how cash flows in and where it goes monthly. Eventually, have them budget as well the monthly allowance you give them.
Allow your kids to know how it feels like to work hard for something that they want to have. Print a photo of what they wish to buy and place it where it can be seen. Whenever they got change, ask them to make a decision. Let them choose between putting it in the coin bank for that object and using it to buy a candy bar or something else that's gone in seconds.
Let them feel from time to time how it's like to earn their allowance, instead of just handing it to your kids. For instance, you may reward them with a percentage of their monthly savings. Another example is paying them whenever they help out with chores in the home. Letting them have a garage sale of things they no longer use or need is also possible.
Taking them to the bank to open savings account of their own is also an effective way to encourage children save money. Help them out in securing forms. Show them how well they're doing by providing them copies of the bank statements monthly.