“How to Teach Children to Save” by David Bursic from West View Savings Bank

Here are some ideas that can help children to save:

Children Under Age six can begin saving in their piggy bank or a shoebox. Help them find and collect coins in the house, car, or on the street. At the end of the week, help them add up their savings. Do it again at the end of the month. Soon they will have started a savings habit.

Children Between Ages 6 and 11 can save in their piggy bank and after an accumulation of 30 days or more, can visit their neighborhood bank and ask the manager if he or she would show your child the bank vault where the money is stored. While you are there, open up a savings account in your child’s name. Consider providing an allowance for doing chores with a good attitude. Everyone is expected to do his or her chores. A proper attitude makes the difference and helps the child to earn some money that they can control.

Children Between 12-15 should save and spend wisely. Talk about choices and decisions and the difference between needs and wants. Help them to find small jobs that bring in money like raking leaves, feeding a neighbor’s pet, watering plants or babysitting. Ask them to keep a 30 day journal of their earnings. Encourage them to keep adding to their balance.

Teenagers Between 16-18 may be driving. Give each teen a mileage book and ask them to track their driving miles for 30 days. At the end of each week, ask the teen to multiply miles by 51 cents per mile. This will help your teenager begin to see the cost of keeping a vehicle. In addition, invite your teenager to open the envelopes with you to the telephone, gas, and electric bills etc. Teach them how to read a billing statement. Encourage them towards a savings goal of $500.

A Final Thought is that  West View Savings Bank, my Franklin Park bank,  encourages children to think about the language of money, to save, to spend wisely, and eventually to invest wisely. Financial knowledge can help prevent a lifetime of living paycheck to paycheck.

Wednesday, 19 October 2011 9:09 AM

Comments

  1. Check out PNC’s new savings program for children, “S is for savings”. They have games for kids to play that reinforce the concept of the 3 jars “Savings, Sharing, Spending”.

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