Why Is It Important for Kids to Know How To Save?
To teach saving to children is to teach them about the concept of scarcity. In life, we will only earn a limited amount of money and often, we can’t spend all the money we get all at once because we have to spend them on the NEEDS before we can spend on our WANTS.
What Do People Save For?
- Emergency Fund (not very relevant to children)
- To afford an expensive item (e.g. a bicycle, roller-blades, etc)
- To afford a vacation (again, not very relevant to children)
- To invest (Investor Kiddo teaches your child how to invest)
How Can A Child Start To Save?
In our family, we start the kids when they receive pocket money. I believe for most families, that’s when children start schooling (Primary 1). We give our children slightly more than they would need to purchase snack/lunch during their break, usually around 50 cents extra. The important part is to let them know that they can choose what to do with the extra money. They can either buy stuff from the school’s bookshop for fun (e.g. slime, cute pencils, etc) OR they can bring home the money, put it into their piggy bank and save up for something they’ve been wanting to get for a long while.
To encourage them, we told them we will contribute half of the price of the item they’re saving for. For example, if they’re saving for a bicycle that costs $100, they will only need to save $50 and we will contribute $50 to get that bike. It’s a bit daunting to save a couple of cents a day for an item that costs $100.
What You’ll Need
- The “My Savings” Printable
- A piggy bank
- A calculator (for younger children)
- A writing instrument (pen, pencil, marker, etc)
The printable is really simple to use. It’s made for kids to understand how savings accumulate. Every time they put their savings into their piggy bank, they will record the date, the amount they put in (under “saved) and write the accumulated amount in the “total”. As time goes on, the number in each “total” bag will increase and they will be encouraged to consistently save when they see that they’re getting closer to their goal.
You will need to print out multiple copies and arrange them in a file.
Click HERE to download “My Savings” printable.