Teaching Children About Savings
Published by
Tompkins Community Bank
on
Helping kids learn about saving is a great way to set them up with smart money habits. They will discover how to save for thing they want, make wiser decisions, and understand that money is not unlimited. Here are some practical ideas that could benefit your family:
Understanding Needs and Wants
Begin by discussing the distinction between needs and wants. Needs are essential for a safe and healthy life, while wants encompass everything else. Encourage your kids to discuss the distinction between things they need and things they want.
Emphasizing the Value of Every Penny
Illustrate the value of coins like pennies, dimes, and quarters to your children and encourage them to save these in a piggy bank. After they have saved up for some time, take them to the bank and show how saving even small amounts can grow over time.
Instilling the Habit of Saving Early
Involve your children in selecting something they desire to purchase. Then, together, calculate the cost and determine how long it would take to save up for it.
By engaging in these activities, the concept of savings becomes tangible and significant for children.
Don't hesitate to reach out to your banker for additional insights on financial literacy.