How to Teach Your Kids to Save Money

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By lilmrsknowitall
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piggy bank

It's important that kids learn how to handle money. Here are some ways you can start teaching money management skills early on.

Difficulty: Moderately Easy

Instructions

Step 1

For kids ages 4-5, preschool age, you can talk about money with them. This helps them with the concept of money. While at the grocery store, when they ask for a gum ball from the machine, simply explain what you're doing when purchasing the gum ball. ex. "I have 25 cents and the gum ball costs 25 cents so I can buy one gum ball."
Step 2

Once kids get into early elementary school, they start learning how to count money, add coins and make change. Continue talking with your kids about how much things cost - but now maybe a good time to give them a dollar and let them purchase the pack of gum at the checkout with assistance.
Step 3

Chores. This is a great method to help you get things done while teaching your child about money! Start a chore chart and decide what kind of allowance each chore earns. Not only will they see how money adds up but they also learn responsibility.
Step 4

For kids 6-8, the best way to help them learn to manage their money is to let them spend it! Really! I take my kids shopping and we talk while they decide what they are going to buy. My 7 year old likes the freedom of spending her money and tries to get the most out of it. She'll say "If I get this then I can also get that!" However, my 11 year old got to the point where if the thing he wanted to buy was more than he wanted to spend - he wouldn't buy it! He would rather save his money than spend it all!
Step 5

Lastly, a piggy bank was always a great way for kids to learn how to save money. Show you children how to count and roll coins then take them to the bank to turn them into dollars. It always helps to teach with visuals. Once your child understands the concept of money, how to make money and how to spend it - they can make better decisions with their money.