Follow the Leader

Instant gratification is something we all have struggled with in life. When we want something, we want it NOW! Unfortunately, this is not reality, which is why it is important for us to teach our children early the importance of saving money.

Never Too Early

Did you know that children as young as 3 are able to learn the concept of saving for something they want? Use this time to teach your children the importance of saving money before making a purchase so that when they become adults, this concept is part of their routine. And, hopefully, they won’t become one of the households in the United States that average about $7,200 in credit card debt.

Here are some fun ways to help teach your child how to save money.

Utilize empty jars. Have your child tape the item, such as a video game or toy he/she wants, to each empty jar. Then, have them place money in the jar as they earn it. This way they can see the money in the jar and can see their progress to being able to buy the item – giving them even more incentive.

Offer a reward. As you know, saving money takes hard work and determination. Reward your child for their hard work by giving them a prize – such as going to a movie. Or, you could even reward them with money toward their savings. For example, for every $5 they put in the jar, you will give them $1.

Remember, one of the best ways to teach your child how to save money is to set a good example. Set yourself up your own jar so that your child sees how you work to save money, as well, to help inspire them now – and in the future – to save before buying.