There’s never a bad time to teach your kids about money and how to save. And the earlier you start, the stronger their skills will be.
Give them money to save
The first step to saving money is earning it and pocket money is a tried and tested system. Encourage your kids to do odd jobs around the house and pay them what you feel is reasonable and within your budget.
Next, you help them learn how to manage that pocket money!
Choose something to save for
Having a reason to save is important. Teach your kids to set aside their pocket money for something they want. Start with saving for one goal and when your child achieves that goal, you can scale it up to two goals and teach them how to prioritise. Part of managing money is prioritising where you spend it.
Make a plan and make it fun
Now that they know what they’re saving for, help them work out how long it will take and make a chart with boxes to check off as they reach milestones. This can help kids understand their goal visually. You could make it fun and get them to colour in when they reach each savings goal.
You could also ask your kids to draw pictures of what they’re saving for, stick it on envelopes or a jar and use stamps or stickers to tick off boxes in their chart each week. A small ritual can help keep them on track.
Reward your kids for good saving
There’s a few different ways to encourage your kids to save extra money. One way could be matching their contributions but we suggest you only do this when they’ve done a particularly good job.
It could also be choosing what’s for dinner that night or even a special outing to their favourite playground or park. An unexpected reward is valued much more than something expected and it helps kids link positive outcomes with being persistent with their goals.
Get your kids set up today with a Bank Australia mySaver account. It’s a fee free savings account with bonus interest for everyone under 25.
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