It’s never too early to teach your kids about the value of money. Although there is no set rule book on exactly how to do this, instilling good money habits in kids from an early age can help them make sensible financial choices as they grow up.
One vital skill that can set children up for their future is learning how to save. There is no perfect way to help you kids learn to do this, and different children may learn at their own pace, but if you’re looking to get your kids started we’ve put together some helpful tips and tricks for you to try!
Creating opportunities to save
If kids are going to learn how to save money independently, they need to be given the opportunity to understand the true value of money and the importance behind saving.
You might want to consider giving your kids opportunities around the house where they can earn extra money, such as helping out with the dishes or cleaning the car. By ‘earning’ money themselves, children can better understand the value and the work that goes into making money, so they might be more inclined to save it!
You could also include saving terms into your child’s monthly or weekly pocket money income, to encourage them to put a certain portion away into their savings pots. For example, you may suggest that they save at least a third of their pocket money every week or month, helping to make the saving process almost second nature – a useful skill for the future!
Start out little and often!
If your kids are still getting into the hang of deliberately putting money into their savings, why not encourage them to try out nimbl’s micro-savings feature? This feature enables them to put a small set amount away into their savings pot each time they use their card – helping them to build up some savings whilst they spend.
Seeing the savings start to gradually build up into a healthy nest egg is really rewarding for children, and helps them quickly see the benefits of putting money aside!
What if they don’t want to save?
Your child might not take naturally to saving right away, which is completely fine – they are kids after all!
Good savings habits can take a while to pick up, and many children can benefit from learning from any mistakes. Giving them the freedom to manage their money independently with guidance from you will soon help them realise the value of each transaction – and that once their money has been spent, they can’t spend any more until their next pocket money pay-day.
Encouraging children to save up for a bigger-ticket purchase that they really want is also a helpful way to instill good saving habits – if they’re after a new games console or pair of trainers, for example, suggest they save up for half or the full cost of the item. They’ll soon see the benefits of saving and will become savvy savers in no time!
We hope this is a helpful guide for first starting the savings conversation with your kids; and if you have any top tips of your own that you’d like to share with fellow parents, we’d love to hear them – send us a message on Twitter, Instagram or Facebook!