Learning to save money is usually not something that young people want to do on their own. If you give the typical child a $10 bill, they will usually spend it. Perhaps they have already been eyeing something they want for a while, or maybe they just see something online or in a store later after you have given them to money. Whatever the case, it’s easy to spend money. There’s always something kids want.
When they get ready to attend college, there will still be things they want. But learning the value of a dollar is an important life lesson. There is research that backs up the idea that the habits kids learn now will last throughout their lifetime. If you’ve been a bit lax and spoiled your kids a bit while they were kids, that’s okay. Who hasn’t?
But now it’s time to teach them how to be careful with their money, because they never know what curves life will throw at them.
If you have been assertive about teaching kids how to save along the way, congratulations! This means that they are going to be more likely to carry these good habits forward with them through life.
How to Have Fun With Saving and Investing
Teach young people to save a certain percentage of any money they make while they are still young by making a habit of putting a certain amount away each time they get paid. The author of You Need a Budget, a popular and helpful book about saving and investing money, recommends giving kids a certain amount of money and increasing it over the years. By the time they are in college, they should have a good amount of money saved. This may help parents too because they could use some of these savings for miscellaneous expenses that they encounter once in school.
To make saving money more fun for young people, try the following tips:
- Make a list of expenses that must be paid first.
- Estimate how much money they will make in a month’s time.
- Use apps that Millenials like such as Acorns.com or Mint.com.
- Identify something small that you are going to purchase after bills have been paid and money has been put away for savings.
Teaching them to pay what is necessary or mandatory first is the first and most important part. Secondly, estimate their income and have them look up salaries of jobs they might get given their chosen industry. This can cause them to be more conscious of what they want to do for a career and to work harder to make more money in the future. Finally, recommend they use helpful, fun apps such as mint.com or acorns.com. These handy apps work with either iOS or Android phones and they both help young people keep up with expenses and teach them to plan for their future and set financial goals.
Developing a savings and investing habit is not easy. But it can be done. Set a good example by continuing to save some of your money, as well and let them know how you are saving for your future security.