Want to bring your little people up to be budget balancing grown-ups who spend less than they earn and with a few bucks put aside for that ‘rainy day’?
Responsible money managers are made, not born, and once they’re out of nappies, it’s not too early to start teaching this to your littlies, and alas, that the money tree hasn’t started flowering in your backyard yet.
Here are some ideas to help teach your kids to save money and turn them into savvy LittleSavers in the process!
1. THE BASICS
Experts say children as young as three can begin to grasp some money management principles. Setting them on the road to becoming savers, not spendthrifts, starts with teaching them a few basics:
- That money is generated by working
- That it’s needed to buy things
- The difference between needs and wants, and
- Why it’s important to cover off the former before splashing out at the toy shop.
2. THREE JARS
Receiving pocket money can help kids learn to budget and prioritise. No one likes a tight wad – and teaching them the importance of saving shouldn’t mean encouraging them to put a deadlock on their bank account once you’ve handed over their weekly portion. The three jars system helps them learn to balance short term fun with long term goals by apportioning their pocket money into categories – Spending Saving, and Sharing.
3. THINK TWICE
We’re all prey to impulse spending once in a while, whether it’s the shoe store at sale time or deep cut discount alerts from ASOS. Guilty as charged, right? For youngsters with pocket money burning a hole in their pocket, the temptation to buy the first shiny thing that catches their eye can be equally irresistible. Learning to stop and think it over is a lesson they’ll thank you for down the track and it can be as simple as saying you’ll return to the store tomorrow, or in an hour or two, if they still want whatever it is they’ve set their heart on. Works for grown-ups too!
4. SET SAVINGS GOALS
Setting a specific savings goal can motivate kids to keep stashing their cash, instead of blowing it as it comes in. Find something achievable that they’ve set their heart on and help them enjoy the satisfaction of making steady inroads by creating a progress chart together. Offering the option of extra cash for extra chores may help get them over the line sooner – and reinforce the notion of reward for effort.
5. IN THE BANK
Being rewarded with more money when you save yours? The idea of earning interest is an attractive one; particularly if kids can see the extra dollars building up in their own name. Look for an account like the BankSA LittleSavers which is fee free and offers bonus interest to holders who make one deposit and no withdrawals in a month.
Plus, there’s fantastic games and activities the kids will love and learn lots of easy tips about saving. It’s a fun way to introduce your child to money, and because your child can deposit every week through their school, it’s an important lesson in learning about the discipline of saving.
Right now, open an account and get a $10 credit to get them on their way, thanks to the kind folk at BankSA. Plus they’ll get a fab welcome pack including money box, calculator, library bag and more!
6. HOME BRAND OR PREMIUM
That moment in the supermarket where you’re wavering between top shelf ice cream and the home brand alternative. Ask the kids to help you weigh up the pros and cons and come with some ideas for what to do with the difference if you decide to go down-market. Getting them involved in purchasing choices for the family helps them understand why it’s important to budget and prioritise and increases the likelihood they’ll learn to get maximum bang for their own buck.
Our friends at BankSA have a fabulous incentive for you to open an account for your kids, just in time for the School Holidays!
Open a BankSA LittleSavers Incentive Saver Account for your child or grandchild, and they’ll receive a $10 credit to help them reach their saving goal sooner.
Your child will also receive a LittleSaver Welcome Pack, including a free money box, calculator, banking wallet and library bag.
This has been a sponsored post for BankSA and all of the opinions stated above are our own.