What is the best way to teach your kids to save money?

Answer 1

You can create a budget with them. Look up Dave Ramsey's ideas. Basically, over the next few years you have the opportunity to offer experiences that will help your child learn about money. Give them an allowance, and expect them to spend it in specific ways: some to save, some to give and some to spend. You will have to determine what works for you. Talk about needs and wants--let them make bad purchases. When buying clothes, set a budget and offer them choices of what to spend the money on. Cheaper pants and a name brand shirt or vice versa? When grocery shopping, give them a list to shop for the best value and let them loose. Offer chores around the house as a means to make more money--their choice. Car washing, folding laundry and other seasonal things were my kid's choices. And most importantly, show them what you talk about. Let them see you paying bills and discuss how you don't put it off. Believe me, financial savvy is a great legacy for your children.

Answer 2

Introduce them to money, teach them how to count and add and subtract pennies, dimes, dollars, etc...

As they get older give them allowance and they can start understanding how they can save their routine income for things they really want etc...

It will teach them how to learn patience to save and get the things they really want and how it affects them when they spend it all and have nothing left over which is how it is in adult life with paychecks.

Teach them about credit cards and credit and about how like if you spend your money all at once and foolishly like you did with your allowance and you do the same with a credit card and then you have to spend a longer time paying off your dues rather than saving your money and waiting and getting a good credit to your name and getting a better credit card and better loans etc...

Teach them how to budget their allowance like you do with a checkbook, in fact give them a spare check book budget book so they can learn how to have the balance and deposits and withdrawals.

Remember to give them advice in baby steps, don't overwhelm them!

Here's some websites to look up and get advice from:

http://www.payjr.com/important-lessons-to-teach-your-children-about-money.html

http://www.moneyinstructor.com/kids.asp

http://life.familyeducation.com/money-and-kids/personal-finance/34481.html