Six ways parents can encourage their child to save money

There are so many factors to consider, and finances are always going to play a huge part. Saving money is one of the most important things you can do, yet many of us have only learnt of its importance through our own trial and error and experiences.

We’re not taught about the importance of saving in school and we often end up having to fend for ourselves when we become adults.

To ensure your child grows up to understand how essential it is to save, the team at onlinemoneyadvisor have put together six ways parents can encourage their children to get saving.

Start with a piggy bank

Most of us will have childhood memories of popping the odds and ends of loose change into our piggy banks.

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Although cash seems to be a rarity these days, it’s still worth giving your child some pocket money in exchange for a favour or their weekly chores.

That way, they’ll be able to see the rewards of their hard work and the importance of saving towards something they desire.

Show them that the goal is to fill up their piggy bank until there’s no more room left and that once it’s filled, they’ll have more money than they perhaps imagined.

Open up a bank account

Once your child is a bit older and the novelty of a piggy bank has worn off, take your child to a bank and open up their very first savings account.

Let them count and hand over the money that they’ll be putting away into the account and make sure they can see the contents of their account every so often.

That way, your child will be able to see their money going up or down, depending on how much they spend or save and act accordingly.

Start a conversation about money

Growing up, money was always deemed a taboo which is why many of us don’t know enough about how to manage our money. Be sure to have an open communication with your child about their finances as this will normalise the topic for them.

Make sure they know the value of money and how to properly manage it as well as the difference between needing something and wanting something, particularly when it comes to material items.

Lead by example

To begin with, it might be worth also purchasing a piggy bank for yourself, as this will show your child how you save too for things you want and it will encourage them to do the same.

You’ll be saving together, and then once both piggy banks are full, you could take a shopping trip together to purchase whatever your child was saving for, showing them the rewards of saving.

Teach them to set goals for their savings

Without a goal, saving money when you’re young is no fun. Translate what your child wants into saving goals and it’s the perfect opportunity to teach them the value of saving.

If your child has their heart set on a new toy or gadget, encourage them to put their pocket money or birthday money towards it. That way, they’ll soon be able to afford it for themselves.

Get excited with them

If you show your child that you’re just as excited as they are when they put money away, they’ll be much more likely to keep doing it. 

We’ve already heard about positive reinforcement, and it’s no different when it comes to finances.

Giving them praise whenever they set some money aside, even if it’s a small amount, will encourage them to keep on going.