Financial Literacy Month is a Great Time to Teach Your Kids to Save
Review advice, updates, and news from West Gate Bank!
March 30, 2019
April is Financial Literacy month. To celebrate, open a savings account for a child at West Gate Bank and receive a free piggy bank!
In addition to setting your child up with savings account, here are five tips for teaching kids to save money:
1. Discuss wants vs. needs
The first step in teaching kids the value of saving is to help them distinguish between wants and needs. Explain that needs include the basics, such as food, shelter and clothing, and wants are all the extras.
2. Set savings goals
Helping children define a savings goal can be a better way to get them motivated. If they know what it is they want to save for, help them break down their goals into manageable bites.
3. Steer clear of impulse purchases
Teach your kids early on that money should not be used to gain instant gratification. Saying "no" to impulse purchases is a key skill behind not spending more than you make, which will help them avoid debt in the future.
4. Encourage them to track their spending
Part of being a better saver means knowing where your money is going. If your children get an allowance, having them write down their purchases each day and add them up at the end of the week can be an eye-opening experience. Encourage them to think about how they're spending and how much faster they could reach their savings goal if they were to change their spending patterns.
5. Lead by example
If you want your children to become savers, being one yourself can help. Getting your emergency fund in shape, opening a 529 savings account or simply increasing your 401(k) plan contributions are all steps you can take to encourage saving as a family activity. You could also decide to save for something together, such as a family vacation or a pool.