Tips on Saving For Kids

• When it comes to saving for kids giving them an allowance is a good idea. Start by giving them a small amount as soon as they are old enough to understand what it is and what it is used for.
• Always make sure that you give your kids enough allowance, but don't give them too much or else they won't appreciate it.
• Make sure that you set a specific pay day (ie: Monday) and be strict in sticking to that day.
• If a child does some little jobs around the house which are outside of what is normally expected of them then you should give them a little bit of extra money to teach them about the importantance of work and how to save.
• In order to teach saving for kids and the value of money it is a good idea for your children to set some goals when it comes to saving money. Get them to set realistic goals such as saving for a new toy or a new bike and congratulate them when they reach this goal.
• Take your kids to the bank to deposit the money that they have saved in their piggy bank. If your kids make regular deposits they can see how their money grows.
• Guide, but do not tell, your kids how they should spend her money. For example suggest ways that they can stretch their money like visiting the library instead of buying a new book.
• Also when you take your children to the bank to get their deposit book updated ensure that you point out the interest that they have earned, so that they are aware of how interest works and how it benefits their personal finances.
• Teach your kids that it is a good idea to put away roughly 50% of their allowance or pocket money into their savings. Also whenever money is given as christmas or birthday gifts it is a good time to remind then about the importance of saving some of that money.
• When your children get older they will begin to want the trendiest brand of clothes because that is what the other kids have. Teach them to see the clothes and not the logo by paying the amount that the generic clothes are worth and ask them to pay the difference between that and the brand name clothes.
• If a child makes a mistake with their money help them to recover from it and do not bail them out. This may seem tough at first, but in the long run it will help them more buy teaching them to repect their hard earned kids savings.