If you’re reading this, there’s a good chance that one of your goals as a parent includes helping your kids to have financial security and independence in the future in fact, that should be part of any family’s mission statement.
The more financially literate kids are today, the better able they will be to handle their finances as adults later on, which means setting them up with the right mindset now can go a long way in helping them learn how to save with our youth accounts as they get older. Here are 10 smart tips to help your kid start saving early in life.
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Start young
Start young. Start small and save for something they want, not something they need. Save for an occasion, like a trip to visit family or celebrate a birthday later in life. If you want your child to start saving early and learn the importance of it, then make sure that when they do get their first job at 18 years old, it’s with an employer who encourages them with their own savings account!
The best way to teach kids about saving is by setting up an account on their own so that they can see how much money is coming into the account each month while still having control over what happens with that money whether it be spending it on something fun or investing in stocks!
Save small amounts regularly
Saving regularly is the key to building savings, and the sooner you start, the better. The first step toward saving is to set aside some money each month for your child’s future.
How much should you save? Be flexible about this amount; it depends on what’s realistic for your family and how much time they spend earning money at school or working part-time jobs. If they’re not paid every week or month, then $50 per month may be sufficient until they enter adulthood. But if their expenses include a car payment or other monthly payments, then increase that amount accordingly.
For example: If your child has a car payment of $400 per month but only makes $500 per month in after-tax income from working part-time jobs around town, then he could afford another $50 towards his savings plan each month which would bring him up to $1500 total by age 18!
Make saving fun
You can make saving fun by using piggy banks and other items to hold money. For example, you could use a small plastic toy box with a lid on it. Put your child’s allowance money in there every Friday, and then let her take it out whenever she wants. Make sure that the amount is small enough so that she won’t be tempted to spend it on something else instead of saving it up for later.
Another way to help kids learn about saving is by looking for opportunities where they can earn money in exchange for spending less on themselves. For example, if a school fundraiser is coming up where parents need volunteers at their home or office location or even just if one of your neighbors needs help collecting donations for their charity event you could offer some extra income here instead of asking people directly what they want to be done without any guarantee from either side whether or not it’ll happen again next year!
This will teach them both how much good work do when paired together properly instead of just blindly giving away cash without thinking twice about whether or not someone else might benefit from receiving those funds too.
Match their savings
Sometimes it’s the simplest things that can make the biggest impact. One of those is matching savings, which aims to encourage kids to save money by giving them something in return for their contributions.
There are many ways to match savings: parents can do this by gifting their children an amount of money they’ve saved up over time; grandparents might offer a reward such as going on a family vacation together or buying something special for them, and other family members could even start putting away small amounts each month for someone else out of their pocket the possibilities are endless!
Talk about “wants” and “needs”
So much of our money talk is about what we need and what we can afford, but it’s important to also talk about wants. We tend to focus on needs when we’re trying to get the most out of our budgets, but it’s more important to teach your child how they should think about their finances. The first step in this process is talking about “wants” and “needs.”
The difference between these two categories is simple: A want (like a new toy or video game) is something you want because it makes you happy or improves your life in some way not because it will get you out of financial trouble.
Conversely, a need has nothing whatsoever to do with happiness or enjoyment; instead, any expenditure associated with meeting that need comes from somewhere else money that could be spent elsewhere if not for its necessity!
So why does this matter? If you only worry about making sure everyone gets enough food on the table every night before going into debt over frivolous things like clothes and electronics then maybe now would be an opportune time for a change!
Let them make mistakes
One of the best ways to help your kid save is to let them make mistakes. They must learn from their mistakes and make adjustments, but it’s also important not to let them make the same mistake twice.
For example, if you’re helping your child set up a savings account with an online bank, don’t just tell them that they must put 10% of every paycheck into this account that’ll only confuse them more! Instead, try setting up a few goals as part of their savings plan: “for every $100 you earn this month, I want you to put $10 into your account by Thursday.” This way, even if something goes wrong (like their parents forgetting about their birthday), there will still be time left over for other activities.
Open a savings account in their name
When your child is old enough, you should open a savings account in their name. This way they can start to build up their own money and make it grow over time. You can also set up a joint account with them if you want it’s important that they feel like they can rely on both of you, especially when it comes to saving for things like college or retirement.
When setting up the account, make sure that it offers interest so that your children will be motivated by seeing how much money grows each month as well!
Show them how to use online banking
To help your child get started with online banking, show them how it works. You can do this by going to the bank’s website or calling up their customer service line. Make sure that you provide all of the information necessary for them to verify your identity and create a new account for you.
Then wait for approval this may take several days depending on how many people are trying to sign up at once! Once approved, log into your account and transfer money between accounts as needed.
The easiest way is just by logging into any of these services from home so that there’s no need for anyone else in person but if you want something more secure than just seeing what amounts are available before making withdrawals/transfers then go ahead and visit any branch location instead!
Allow them to control their money
The best way to help your child save is by allowing them to control their own money. Kids should be allowed to make their own decisions about how much money they have, when and where it should be spent, and what items they purchase with it.
They may want a new toy or game for Christmas but if you only give gifts that are on sale now, then you won’t be supporting their dreams as well as possible which might just come true in the future if you don’t give them enough time now!
Start saving early and give your kids the gift of good financial habits
Saving early and giving your kids the gift of good financial habits is important. The benefits of saving early include building a nest egg for college, retirement, or emergencies, as well as building their confidence in their ability to manage their finances well. Teaching kids how to save money can be one way to help them learn about money management skills and it’s fun too!
Conclusion
We’ve talked about the importance of starting early and giving your kids the gift of good financial habits. But we hope you’re also convinced that it doesn’t have to be hard, complicated, or expensive. With a little guidance and support and a little bit of luck! Your kids will be able to save their own money in no time. And who knows? Maybe they’ll even discover something unexpected about themselves along the way.
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