1. Show them money comes from work.
Rather than offering them an allowance, try setting up a commission-based system where kids get paid for the work they do. Take it a step further by having them put a percentage into their savings account and allowing them to spend a little now. This shows them moderation, let them save their cake and buy Legos, too!
2. Assure them it’s ok to wait.
Instant gratification is hard to compete with, and kids have no concept of delaying that. By teaching them to save for the things they want, they will learn to set goals and be motivated to work even harder to attain them.
3. Let them make mistakes.
Actions have consequences that goes far beyond money, so it’s hard to let your kids fail. Most times, it’s easier to tell them “no” so their money stays in the bank. But it’s also important for them to experience the process of spending the money they’ve earned so they can learn that when it’s gone, it’s gone, and you have to keep working to earn more.
4. Show them their savings.
If you’re a bargain hunter, you might just show your kids the endgame of the deals without really letting them appreciate the comparison. If you have them purchase something at a discount, have them research retail prices and calculate the savings themselves. They might be amazed at how much money they can save when they comparison shop.
5. Make them pay for the things they want.
Does your child want more data on their phone that isn’t included in your family plan? Have them contribute the extra money. This could get them thinking about taking on additional tasks to increase their income. You could also encourage them to sell older toys that they no longer use to put towards their savings goals.
6. Pass along your credit union legacy.
Show your kids the unique benefits of belonging to a cooperative like a credit union. Because credit unions are member-owned and not-for-profit, we are able to pay higher deposit rates price loans lower, and provide fewer fees than banks that must please their stockholders. By showing them that there is a difference you’ll allow them to be an advocate for their money and bask in the benefits, as well! For more information about opening a Kids Savings Account, contact Member Services.
We’d love to hear how you implement these or what you already do to teach your children the value of the dollar. Let us know in the comments!