Teach Your Pre-Teen To Save Money
by Erik Folgate
Filed under Kids and Money, Spending and Saving
Yesterday, I discussed the importance of teaching your young children to manage a set amount of money that you give them for extra jobs around the house. Today, I’ll talk about helping your pre-teen learn how to save money. From ages 8 to 12, these youngsters know how money works, but they have no concept of saving it. You can teach them to save by helping them open a savings account. Online savings accounts are the best out there, but they can’t open checking accounts yet, so you’ll have to go with a traditional savings account. The interest rates are horrible, but that’s not the point. The point is to help your child learn how to save on a consistent basis.
Open Up a Savings Account
Make it an entire event with you and your child. Go to the bank together, open up the account, and bring whatever money he or she can scrape together to put in the account. Then, go out to lunch or dinner to celebrate the start of their saving career!
Write Down Savings Goals
Sit down with your child and write down a few things that they would like to save up to buy. They will probably only think of items they want in the near future, but help them think about the bigger picture like a car and college.
Match Their Savings
If your child decides he or she wants to save up for a car or another large purchase, tell them that you’ll match their savings dollar for dollar if they are really serious about saving money. You’ll see how quickly determined they get. Doing this also helps them understand the concept and importance of taking advantage of a free match from a 401k later on in life.
Saving money is a habit that we develop, and parents are the most important people to help children learn sound financial principles. Help them learn how to save money now, and they’ll be millionaires in their fifties.
I like the idea of a “401k” plan for kids. Especially if it’s to help save for something they want, like a new car or a new computer.
Hi! I was surfing and found your blog post… nice! I love your blog. :) Cheers! Sandra. R.
I had a paper route in my early teen years. My mother and I set up a savings account in my name with this purpose in mind. I still have this account. My parents stressed the importance of saving up for big ticket items like clothes, cars, and vacations. My brothers and I actually paid for a week long trip to Colorado with our paper route money.