Sometimes when children hear their parents or other adults in their lives talking about cutting spending or saving money, they assume that the family is going through a rough patch. As appropriate based on children’s ages, family conversations about money goals, including saving and spending plans, reassure children. It is also a great way to introduce (or remind) children about the reasons we save.
Talking about family saving goals helps children understand that putting money aside for the future – whether to be prepared for unexpected expenses, for short-term goals such as summer vacation, or for longer term goals such as paying for college – is important to you. They will also likely be interested in knowing how they can help. They may even want to set their own savings goals and be motivated to work toward achieving them!
Saving as a Family
Get your family involved with your saving plan by brainstorming ways to cut expenses in order to free up money to put toward your saving goals. Explore low- and no-cost activities you can do together as a family. Consider selling rarely used books, toys, clothes and other items in a garage sale or other marketplace.
Involve children by:
- Encouraging them to be aware of their energy and water use by turning off lights and electronics when not needed and by turning off the water when brushing teeth and taking showers.
- Thinking about things that the family regularly spends money on and talking about if the family stills wants or needs the items or if they can select cheaper alternative or perhaps do without them.
- Teaching them to comparison shop and choose generics or use coupons when it makes sense.
- Challenging them to suggest ways to enjoy time together as a family for less.
- Including children in trips to the bank (or an ATM) to deposit or transfer money into a savings account helps them to visualize the process. Consider posting a running total of the dollar amount of deposits and the progress made toward a family saving goal on the refrigerator or a bulletin board.
Saving money is a habit that is developed over time. In addition to letting children know that you save, help them begin to develop their own saving habit. Money as You Grow, a framework that links money-related activities to children’s developmental stages, is a great resource for conversation starters and activities for children of all ages at consumerfinance.gov.
Guest Blog Post by Elizabeth Kiss, Ph.D.; Associate Professor and Extension Specialist, Kansas State University via America Saves.
Patterson State Bank has a savings account specially designed for young savers because we believe it’s never to early to start saving. This account can be opened with as little as $10.00 and there are no monthly fees. Why not start a lifelong habit of saving today? Stop by one of our branches or open an account online now!