3 Ways to Teach Children to Save

4 kids hugging in a circleFinancial literacy is a skill that impacts everyone throughout their lives. Yet many people are not exposed to essential money concepts until they become adults—often after they have made serious financial mistakes. You can help by introducing the concept of saving and spending wisely to your children or grandchildren. Here are three ideas on how to teach sound financial habits to the children in your life:

#1:  Read a Money Book

Does your child like stories? Pick up a money-related book (such as The Berenstain Bears’ Trouble with Money) and read it with them. Ask your child questions about the book to encourage them to think about how they would save and spend money. Would they do things differently than the characters in the story?

#2:  Take a Field Trip

Are you stopping by the bank soon to make a deposit? Take your child with you and explain what you are doing. Help your children learn where they can save money, starting with their piggy bank at home and eventually depositing money into their own account at a bank. If your child is old enough, you can explain banks will pay them interest—giving them money for saving money!

#3:  Monkey-See, Monkey-Do

Finally, use the adage “monkey-see, monkey-do” to your advantage! If you model good saving and spending behavior for your children, they are more likely to follow in your footsteps and be financially savvy later in life. This is especially true if you involve them in financial discussions to engage their interest. For example, before taking a family vacation, ask your child to set their budget for toy and souvenir purchases. Another good activity is to have them help make the grocery list and compare prices in the store while shopping. 

Start Saving Today

Open an Eaglee Saver’s Account with just a $10 opening balance and help your child or grandchild (ages 12 and under) start saving for their future. There are no monthly service fees and they can earn a t-shirt or stuffed animal when their balance reaches $100. Call 608.643.3393 or visit bankpds.com/savings for more information.