How do I teach my child to save money?

June 8th, 2013

Child putting change in  piggy bankConvincing kids to set money aside can be a hard sell, especially when each new day brings a new (and expensive!) gadget that “all the other kids have. ” But it can be done. The first rule is to set a good example. It’s harder to get your child into the saving habit if you’re swiping your credit card at every store.

The next time you see an item you really want—a big screen TV for example—mention in front of your kids that you don’t have enough money for it right now. Point out that taking the extra time to save for it instead of charging it will make you appreciate it more when you finally do buy it. Next, calculate the credit card interest for your kids so they can understand the real cost of giving in to every buying impulse.

Another strategy is to give your kids power over their own choices when they go to restaurants. Tell your children that if they order water instead of soda, they can have the money you would have spent on sugary drinks. This parenting one-two punch drives home the value of financial responsibility and good nutrition at the same time!

A good way to begin educating them is to open a savings account for your child. The First National Bank and Trust Company of Newtown has created a special Kids First Savings account to help your child develop saving habits that will last a lifetime. The accounts are open to anyone up to 18 years of age and have no minimum balance requirement or monthly maintenance fees. They even pay interest on deposits of $50 or more so your child can watch his or her money grow. Click here to learn more: http://fnbn.com/personal/kids_first.html

How do you teach your kids the value of a dollar? Leave us a comment, and let us know.

Kevin D. Dolton
A.V.P / Branch Manager
First National Bank & Trust of Newtown
Jamison Office
215-343-9366