Its never too early to start helping your children develop a savings mindset. By instilling good financial habits early on, you can help them become financially responsible adults in the future.

Now, doesnt that paint quite the picture? To achieve this, we have outlined saving tips to help get your children started.

Here are five saving tips for children:

1. Encourage Your Kids to Save Their Allowance

One of the simplest ways to teach children about saving money is to give them an allowance and then encourage them to save a portion of it. This can be a weekly or monthly allowance, depending on your preference and maybe what you think the child can work with.

Encouraging your child to save a portion of their allowance each time they receive it helps them learn the value of money and how to prioritise spending, but more importantly, it builds the saving culture in them.

To make saving fun, you can offer to match the amount they save each month. For example, if they save N1,000, you can match it with an extra N1,000 in their savings account. This will give them the incentive to save more.

2. Open a Savings Account

Opening a savings account for your child is a great way to teach them about banking and saving. Many banks offer savings accounts specifically for children, often with attractive incentives such as lower interest.

On Ardilla, you can open a joint savings account with your kids and monitor their progress.

It is important to involve your child/children in the process of opening their saving account. You can take them to the bank with you or download a banking app(e.g. Ardilla) together and encourage them to ask questions.

Getting them involved might be a tall task, especially for children who just want to play, but the reward is that it will help them understand how banks work and the importance of saving money.

Encourage your child to deposit money into their savings account regularly. You can set a goal with them, such as saving N10,000 by the end of a month or year with the promise of a reward. It will give them a sense of accomplishment and motivate them to save even more.

3. Teach Your Kids to Budget

Teaching your child how to budget is an essential part of saving money. Help them understand the difference between needs and wants.

To be fair, all their needs are met by you, the parent, so getting them to see the bigger picture might be challenging but not impossible. Maybe start by teaching them how to prioritise their wants.

Encouraging your child to prioritise their spending if they have a limited amount of money helps them think carefully and employ the principles of opportunity cost to decide what they want to spend it on.

When teaching them how to budget, there should be some kind of reward for when they do a great job of budgeting and spending their money. There should also be some kind of punishment, although nothing too serious.

Rewards and punishment will help them learn to make smart financial decisions and avoid impulse purchases.

4. Have a Garage Sale

A garage sale is a great way to teach your child about letting go and selling items they no longer need.

Help them go through their toys and clothes and decide what they no longer need and want to sell. This will not only declutter your home but also give your child a sense of responsibility and ownership.

Encourage your child to set a price for their items and negotiate with potential buyers. This will help them develop communication and negotiation skills; it has proven to be a fun and engaging exercise for kids.

You can also teach them the value of money by showing them how much they earn from selling their items and then asking them questions on how they intend to use the money.

5. Set a Good Example

Children learn by example, so its essential to set a good example when it comes to saving money. Show your child how you save money by explaining your financial decisions.

For example, if you decide to buy a particular brand over another for strictly financial reasons, explain why you made that choice.

You can also involve your child in family budgeting. Show them how you budget for groceries, bills, and other expenses. This will help them understand the importance of financial planning and budgeting.

Conclusion

Teaching your children about saving money is important to their financial education.

By encouraging them to save their allowance, opening a savings account, teaching them to budget, having a garage sale, and setting a good example, you can help them develop good financial habits that will benefit them for a lifetime.