How to Motivate Your Kids and Grandkids to Save Money
It can be hard to convince kids to save the cash they receive for their birthdays and holidays. However, saving early can have great long-term rewards! It never hurts to start good saving habits that will become second nature in the future. Here are some tips on how to motivate your kids to save money:
- Teach Kids Wants vs. Needs
To get started, have a discussion with your kids explaining the difference between wants and needs. Point out needs around the house (food, medicine, clothing, etc.) and identify the wants (expensive shoes, video games, etc.). This will help your kids understand prioritization when it comes to spending and budgeting. Learning this difference is essential to saving now and in the future.
- Pay Allowance
Many parents will give their children an allowance for chores. This can be a great tactic, as it gives kids the responsibility of earning their own money. Not only will they be motivated to complete more chores, but they will also understand the value of money on a deeper level. Not to mention it never hurts to have a helping hand around the house!
- Help Your Kids Create Saving Plans and Set Goals
Setting savings goals can be incredibly motivating for younger people. Next time your kids want a new bike or video game, help them plan out how much they should save weekly to achieve their goals. Watching them get closer to their save goal per week should keep them motivated not to spend their hard-earned cash.
- Set a Good Example
You are your kid’s main role model! Demonstrate saving habits daily and your kids will inevitably pick up on them. Talk to them about your own saving goals to help them understand that saving is a lifestyle change.
- Show Kids How Their Money Can Grow
While investments can be a tricky subject, teaching older kids the basics can be a good way to get their toes dipped in the water. Simply explaining what a stock or a mutual fund is can go a long way. They’ll be amazed to find out that they can make money simply by saving.
Making saving a habit in your children’s lives can kickstart a great financial future. As you guide your children, we can create a plan for you here at Insight to help you reach your financial goals as well. Request a consultation with one of our financial advisors today to get started.
Insight Wealth Strategies, LLC is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Insight Wealth Strategies, LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Insight Wealth Strategies, LLC unless a client service agreement is in place.
Insight Wealth Strategies, LLC (IWS) and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.