Tips on How to Teach Kids to Save

About 4 months ago my 8 year old son declared “I don’t want any of my pocket money anymore, just put every single dollar into my Scoot account. I’m saving up for an iPad mini.” This really took me by surprise but I know it is something he has really wanted for ages. I had a chat with him about saving money, how an expensive item like an iPad can take a while to save for and how the more dedicated you are about saving, the quicker you get there.

We pulled out a Target catalogue, found the iPad he wanted and cut it out. I then helped him calculate that with the money he already had, how long it would take him to save up the rest. We worked out a date – so while it is still another 5 months away he is very proud to see his account balance and know that every week goes by he gets closer to his goal.

Occasionally he asks me for money for something like a book he really wants and I tell him he would have to use his own money and this makes him think carefully whether it is worth dipping into his savings and prolonging his iPad purchase.

Here are 5 Tips on How to Teach Kids to Save:

1. Work out what your child wants to buy. It might be something small, like a DVD or Lego. Or it could be something bigger like an iPad mini – then get online and have a look at this savings planner: http://www.bcu.com.au/scoot-s-savings-planner. It is VERY kid and user friendly and they will have fun working out how long it will take them to save for that item they want.
2. It also helps to get a picture and cut out so they can visualise and be reminded what they are saving for.
3. You could also put a chart on the fridge and tick off or pop on stickers every time they save money and get closer to their goal.
4. Explain to them about interest – the more money they save, the more interest they’ll get = money for free!
5. If you are going on a family holiday to Gold Coast, or even somewhere bigger like Disneyland, explain to the kids they have to save money for their own souvenirs. Or for example, if your kids always want to go to the Coffs show (on this weekend!) plan to start saving a few weeks or months before so they use their own money for rides and showbags.

I think for me (and possibly most parents) the hard thing is being conscious to saying no to everything kids ask for. But by giving them responsibility for their money, explaining to them about saving, setting a realistic savings plan and having a kid-friendly and local bank account it is only a matter of time before they will be saying “I don’t want to see any pocket money, please save every cent.”

You can find out more about the Scoot’s Super Saver account by clicking here.