Five hot tips on how to teach your kids about the true value of saving!
Financial skills are integral to a prosperous future, yet there is not much education about savings or monetary gain at schools.
Most kids learn a lot of the habits they'll have for life before they're seven years old. So it's not just important to make sure they study hard, it's also important to teach them about money too.
Below are some examples of how to teach your kids the benefits of saving!
1. Set a good example
One of the best things you can do is to show your kids that you save money and how you do this. For older children, it may be showing them your bank accounts online/on your phone and showing the way you let your funds build and budget your spending. For younger children, it may be rewarding to put money in a jar while they are watching and talk about it as your savings jar. You may also like to talk about what you are saving up for and elongate the process so your kids understand that saving takes time and means you have to wait for things you want!
2. Offer rewards for saving money
Consider rewarding your child for saving their money. For example, if your child doesn't spend their savings for a certain amount of time, you could give them a reward or treat. This will be a great incentive for them to save, which will later correlate when they gain savings interest.
3. Set up a bank account for your child
The Incentive Saver Account run by BankSA is an easy-to-use statement-based savings account that rewards your child for making regular deposits to achieve their savings goals. The head start for growing their savings comes from a bonus variable interest rate when the child makes at least one deposit each month and no withdrawals in the calendar month. There are also lots of bonuses to opening up an Incentive Saver Account with BankSA at the moment, including a $10 credit, the chance to win a $500 cash deposit and a welcome pack including a free moneybox, calculator, banking wallet and library bag.
4. Make a savings goal chart
Once you know what your child wants to save for, figure out how many weeks it will take and make a chart. Use stickers once they reach their weekly/monthly savings goal. Additionally, you could use an image of something your child is saving for as added incentive on the chart.
5. Use Different Envelopes?jars
On either an envelope or jar, help your child draw a picture of something they want to save for. Whether it be a $20 toy or a new musical instrument, this exercise will help them understand that some things take longer to save for. Additionally, it will help them understand how to distribute their income into different savings streams.
BankSA LittleSavers: Teach your kids the value of Saving