Teaching Children About Money: 4 Simple Steps to Becoming a Saver

It is always easier to spend, rather than save. But once the excitement of that new toy or video game wears off and the piggy bank is empty, your child may start thinking differently about saving.    

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Teaching Children About Money: 4 Simple Steps to Becoming a Saver

3 Nov 2017

Teaching Children About Money: 4 Simple Steps to Becoming a Saver

It is always easier to spend, rather than save. But once the excitement of that new toy or video game wears off and the piggy bank is empty, your child may start thinking differently about saving.  

It is always easier to spend, rather than save. But once the excitement of that new toy or video game wears off and the piggy bank is empty, your child may start thinking differently about saving.

Saving can be fun, easy and rewarding if you teach kids to follow this simple plan:

Set Your Goals

Decide what you’re saving for and how much it will cost. Then, you can figure out how much you have to save and for how long. For example, if you want to buy a new video game that costs $60, you could buy it in three months if you saved $20 every month. Make your savings goals and stick to them!

Assign Your Money

Whenever you receive money, divide it into three categories: Save, Spend and Share.

Always put money in savings first. Saving for big things or more expensive things later is a great way to reach your savings goals. Then you can spend a set amount of money on the things you want to buy right away. Sharing with others – buying gifts or giving to a worthy cause – is important.

Track Your Spending

Keep a money diary and write down everything you buy, how much it costs and why you bought it. This will teach you about yourself and what kind of saver you are. Don’t feel bad if you aren’t very responsible about your money yet. Keeping track of what you spend is the first step to becoming a super saver!

Start Early  

For those 12 years old or younger, Redstone Federal Credit Union® has a special savings account! Our STAR Club® program helps younger members develop wise spending habits, keep good financial records and start a foundation of good money management.

Open a STAR Club account today, and receive a piggy bank to help encourage kids to start saving. A parent or legal guardian must be joint account owner. Once the piggy bank is full, bring it to one of Redstone’s many locations with a coin machine, and count your coins for free. STAR Club members also receive special gifts and surprises throughout the year.

Have other great saving strategies for kids to add to the list? Let us know in a comment below!

This article was adapted from our Aspire! member newsletter. See all the articles here.

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