Learning how to save money is a process that takes time to develop. Therefore, it’s smart to start teaching children about money, saving goals and how to go about saving from a young age. The younger children are when they learn how to handle money, the easier it will be for them when they grow up. We have 6 tips for you to teach your children how to save!

1. Teach them the difference between ‘I want’ and ‘I need’

The most important lesson is learning the difference between ‘I want’ and ‘I need’. Basic needs like food, shelter and clothing and such fall under the category ‘I need’. Everything that they don’t need to survive falls under the category ‘I want’. When they have learnt this concept, they can move on to the next step.

2. Create saving goals

As soon as they know the difference between ‘I want’ and ‘I need’, you can start with creating a saving goal. A saving goal is an item (or amount of money) that falls under the category ‘I want’, because saving money needs to become more attractive to the child. Do they want a new toy? Take that as a saving goal.

3. Create a reward system

If a child has come up with a big saving goal, you can offer to help pay for a part of the amount. Example: the saving goal is 50 euros. When your child has saved half of this amount, you could give them a bonus of 15 euros. This way saving becomes easier and more fun!

4. Give children a place to store their savings

Saving becomes even more fun when your kids have a fun place to store their savings. At Zilverstad we have a broad collection of silver colour money boxes in all kinds of shapes and forms. For example, we have a unicorn, a hedgehog and a truck! With such a fun money box, learning how to save will be a piece of cake!

5. Let your kids earn their own money

When you’re teaching your children how to save it is important to also teach them that you have to earn it. For example, you can let them do chores around the house for a small amount of money (putting away their toys at the end of the day, or cleaning something around the house). Nowadays, a lot of children get a weekly allowance. You can come to an agreement on how many hours’ worth of chores they have to do for the amount of money that they get. This way you teach them how to save and that hard work is rewarded.

6. Give the right example

Learning how to save starts with the parents. Parents can give the right example by having open conversations about money at home. For example, show them that you put away money for emergencies every month. Or that you are already saving for your pensions. By making learning about money a part of their daily routine, young children learn how to handle money. Tip: place a money box in a common area such as the living room. Every family member has to put in a small amount of money each week. When you have a nice amount you can do something fun with your family!

Take a look at our other blogs for more inspiration!