Teaching children to save money can lay a
foundation for sound money management later in life.
Children typically model parents’ behaviors, said Young, who offered these tips for parents:
- Take children with you when you go to a bank or other financial service provider.
- Let them see you making deposits and explain why you are saving. Your reason might be for home remodeling, a family vacation, or a rainy-day or college fund.
- Help children open their own account and encourage them to save a portion of their allowance or money received as gifts, payment for extra chores or wages (such as for lawn mowing or snow shoveling).
- If parents are financially able to match some of a childï¿½s savings goals, the child may be more inclined to save, because the savings add up more quickly.
- Establish a savings goal. Saving for a new bicycle, for example, may encourage a child to pause before spending on impulse purchases.
More information on teaching children about money management is available at county and district K-State Research and Extension offices, as well as on Extension’s financial management Web site: www.oznet.ksu.edu/financialmanagement.