As adults, we often think of saving as something necessary and the responsible thing to do. We save up for things such as a new furnace or braces for one of the kids. Once in a while we will also save for something fun, such as a family vacation, but we often go about it with our usual boring adult selves–we plan, we save, we move money to a vacation account. These techniques, the ones we have learned over the years and now practice, however, don’t usually work with kids. For them, saving has to be visual and fun. Help them establish a fun fund, and you’ll be teaching them that saving their money can be something exciting to do.
Why do you want to save? Kid need some sort of goal, even a general one. Maybe they want a new game or electronic device or baseball camp. It is okay to have a “just for fun” goal too. With a general goal, kids can tap into the savings on a certain date and buy whatever they want, or choose spend some and then keep saving.
The goal here is not necessarily to teach kids about how to spend wisely just yet, but more about how saving can be a fun and positive experience. Most kids are naturally conservative with money once they learn to save. Once the kids are familiar with saving, then you can start teaching them about spending wisely. The mistakes they may make in the beginning will have more impact when it involves their own savings.
Get started by helping your kids to create some fun visual reminders for saving. Go out and get one of those colorful themed piggy banks. There are so many different ones out there, from pigs dressed as princesses or football players. Pick one that is somewhat related to a goal, such as an ice skating pig for figure skating lessons, or a pig with glasses to save for some favorite books and put it in a prominent place. This will serve as a strong visual cue to save. You can also pick a generic pig and then dress it up with felt or construction paper to fit the current savings theme.
Other visual reminders might be photos cut from a magazine or a calendar in which your child puts a mark on any days in which he or she saved. Ask your kids to draw a picture of their savings goal, and place it on the refrigerator for all to see.
Start saving contests and challenges to keep motivated. How much change can you find hidden in the couch cushions in ten seconds? Who can increase their savings fund with the most money buy selling items at a yard sale?
Figure out new ways for kids to earn money for their fun fund. For example, you might allow the kids to find and cut coupons for items on your grocery list and then keep the difference that is saved. Are there jobs around the house above and beyond their chores that you would be willing to pay them for? Give them the money right away so they can associate the extra work with and increase in their savings.
Use your imagination to come up with new ways help kids grow their fun fund. If you create an enjoyable atmosphere for saving, it won’t seem like such a chore.