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4 Ways To Celebrate ‘Teach Children To Save Day’ [April 11, 2014]

April 11th, 2014 · No Comments · Saving

by Staff

Teach Children To Save DayIf you can teach kids to realize their financial goals now, they’ll be way ahead of the curve when it comes time to make adult saving (and spending) decisions.

This ‘Teach Children To Save Day’ — April 11, 2014 — make some time with your kids to make saving fun!

1) Show them how fun a budget can be.

Many people grow up to fear budgets so much that they dare not even make one. Well, you can nip that right in the bud by teaching your kids just how fun and easy budgets can be.

The American Bankers Association recommends the 4-jar budgeting method:

  • One for short-term savings goals (30 percent of income)
  • One for long-term savings goals (30 percent of income)
  • One for spending (30 percent of income)
  • One for donating (10 percent of income)

You can make it easier for kids to stick to the plan by giving them allowance and chore money (if applicable) in denominations that can be easily split among their jars. And make change for your kids when they receive birthday money, and the like, in the form of big bills or checks.

For instance, if they’re earning or receiving $5 a week, be sure to give them three dollar bills and two dollars in quarters so they can easily (and immediately) distribute the money appropriately in their jars. When they receive larger bills in the future — for birthdays and such — make change for them.

2) Write, draw, and/or collage their savings goals.

The more focused you are on a goal, the more likely you are to achieve it. And few things focus the mind more than seeing a visual reminder of that goal every single day.

Break out the paper, crayons, water colors, construction paper, magazines, and any other art supplies your kids can use to “create” their savings goal. This is actually an effective means of goal realization for adults too, so by all means, make your own financial vision board too.

3) Plan a family savings goal.

As exciting as it is to reach financial goals alone, it’s even more fun when multiplied by the power of family. You’ll not only keep one another motivated, but you’ll also save more faster, giving your kids a powerful lesson in teamwork. The, of course, once the goal is reached, you can all enjoy the success together, be it a new flatscreen TV or a trip to Disneyland.

4) Set up a kid’s savings account at the bank.

While the 4-jar budgeting method is an effective one, it should work in conjunction with an actual savings account. Many banks offer them specifically for kids, requiring no minimum deposit and charging no fees. Every time the amount in the long-term savings jar reaches $50, for example, take it to the bank. It not only keeps money safer, but also earns interest — an exciting lesson to learn.

Beyond Teach Children To Save Day, remember, you’re already teaching your kids about money every single day…by example.

Create and follow your own workable budget. Make and keep savings goals. Always spend less than you earn. When you talk about money, make your words are positive ones. And never stop making financial education a priority for your kids.

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