NCAC is partnering with Northwest Financial Credit Union to provide tools you can use with your Scouts to discuss financial literacy. Watch for future articles to help teach children about saving, budgeting, and more! As the Scout Law says, A Scout is Thrifty!
One might ask, when is the right age for children to learn about saving? Some may say parents should start teaching their kids about the importance of money as early as age two. Some say parents should let children be children and not worry about real-life matters, such as finances. You can teach your children to save money at almost any age, just by following these tips:
Be careful not to give in to your children every time they ask for toys and gifts. Many parents have their children earn rewards instead of getting things just because they asked for it. If they have to earn something, they are more likely to appreciate its value.
Use Jars to Save
A fun way to help your children save money is to use piggy banks or jars. Using clear jars will give a visual of how much money is piling up and how close they are getting to meeting their savings goal.
Set an Example Through Actions
Our kids learn from us. If they see us doing something, the likelihood they will also do it is high. If your children see you purchasing excessively, they might think that this is a normal part of life.
Start a Savings Account for Them
Open savings accounts for your children as early as possible. It will help you teach them the importance of saving for something special and how to earn dividends.
Credit Cards are Loans
It’s important to teach your kids about loans and debt. Teach them to respect credit cards, how they work and that credit cards are loans.
Allowance vs. Commission
Instead of just giving children a monthly allowance, you could pay them commission in return for doing chores. Money in return for mowing the lawn, doing the dishes, cleaning their room, doing the laundry, and other chores, will help teach them it can be hard work to earn money.
Talk to Them
The best way to get the message about saving money across is by talking to your children. Nothing works better than telling children about the advantages of savings. Teach them what they can do with their savings and how it’s beneficial to save as early as possible. If you help your children to understand the importance of money early, they will develop smart savings habits to use as adults.
Make your own Save, Spend, and Share Savings Jars with Westie! ww.nwfcu.org/youth