As adults, we understand the importance of saving the money we earn; but how can you get your kids started down the path to a solid financial future? David Sant, Chief Marketing Officer with Cyprus Credit Union, says, "One of the most important aspects of anyone`s finances is saving, which can be difficult, even for adults. Starting now will help your child begin the foundation they can build their financial future upon."
These are more of his suggestions:
Make it Fun
Making smart money choices doesn`t have to be boring. If there`s something specific that your child wants to buy, create a savings chart for them. Every time they hit a savings milestone, there can be some sort of reward. This could be as simple as a sticker all the way to matching the amount they have saved. If your child is new to saving, start with smaller, more attainable goals to prevent discouragement and then work your way up.
Start Budgeting Early
You can start teaching your child the importance of budgeting early in their life. Obviously this doesn`t mean sitting down with your 5 year old and creating an excel sheet, but you can use more visual methods.
A good way to represent budgeting is by getting three different jars labeled `savings,` `spending,` and `sharing.` Anytime they receive money, split it between these three categories as you see fit.
Set a Good Example
If your kids see you saving money and making smart financial decisions, they are more likely to follow in your footsteps. For example, you could use the chart method when saving for something for the family, such as a vacation. This will allow your child to see that you also save for things you want. Bring them along with you to your financial institution so they can see how the process works first hand.
Kids Savings Accounts
One of the best ways to teach your kids to save is opening a savings account for them so they can see their money grow. Many financial institutions have some sort of kids program to encourage saving. For example, Cyprus offers a `Dollar Dog` program. The program is available for kids 12 years old and younger and teaches them the value of saving. For every $10 they deposit they receive a stamp, after 10 stamps they will get a $10 gift card of their choice.
For more information please visit www.cypruscu.com.