Teaching Kids To Save Money

Teaching kids to save money. As if parenting isn’t hard enough. There are so many lessons. So much to remember and execute well. It is enough just to come up with the system. Have them do the chores. Check the chores. Pay them. Now once they get paid, you should teach them to be responsible with it. Well the good news is, you aren’t alone. There are very simple ways to go about this!

Commission vs. Chores vs. Family Contributions – Teaching Kids

Parenting shaming is awful. It happens all the time. Let’s face it…we are all trying to keep several balls in the air. Teaching kids life skills goes way above and beyond one simple lesson. So, do what works for you! I have friends that have a traditional system…along the lines of you do A, B and C and you get $X.XX amount of money. Another one of my friends has a commission system. This means, you want money? You work. All jobs are not equal, and neither is the pay. Some weeks you work more, you make more. Some weeks you work less, so less dough for you. I have a family member that separates work from pay. You get $X.XX based on your age and needs. You do A, B and C based on your age, not because you get paid, but because you must contribute to the family. Do whatever works for you, your familial situation and your beliefs.

Now that they have the money, how should they save it? The most important thing in my opinion is that they are doing it. Take them to the bank if you think it matters. Have a cup in the cupboard or an envelope somewhere. One of the greatest moms I know makes them give $1 to long term savings (i.e. a car or college), $1 to short term savings (an iPad or camp) and $1 to “giving” either a church or social cause. This goes up with age, and as they make more money the amounts will increase.

Overall, you are teaching your child life skills that will benefit them (and their potential family and/or spouse) into the future. We are responsible for raising these tiny kids up from babies to functional adults. The little and consistent lessons often lead up to the best habits.