«   |   »

Teaching Children How to Save Money – But Also How To Spend And To Give

By Alex Summers

When it comes to children and money, the traditional perspective is that kids need to be taught how to save. Parents will give their son or daughter a piggy bank, hand them a quarter once a week, and then instruct their child to save those quarters until the bank becomes full and stuffed. At that point the money can be spent however the child chooses, but this is not the emphasis of the exercise. The main point is that the youngster learns to save.

Saving money is certainly a valuable and worthwhile life lesson.  But any adult who, for example regularly checks their online banking account or needs to prepare for retirement, knows the importance of frugality and patience when it comes to money. But money was created to be spent, not merely to be saved. Furthermore,  the Bible instructs us to be good stewards which includes not only saving but also spending and  giving i.e.  charity. So saving is important, but so are spending and giving – two financial skills that children also need to be taught. If a child knows how to save, spend, and give in the correct manner, he is not only responsible and poised for adulthood, but he also is well on his way towards being a charitable human being.

So how can we make our children better spenders and givers? Here are a few tips:

To make your kids better spenders, give them budgets and let them make decisions in everyday life.

-At the grocery store, give them a set amount of money, a required nutritional content, and let them pick out food.

-When shopping for Christmas presents, give older children a budget from which they can choose the combination of expense and quantity that they desire from their gifts.

-To let your children work with money that is still real but less tangible, give them an allotment of family airline miles and let them decide a vacation destination.

To make your kids better givers, encourage them to contribute to charitable causes.

-Have them select one Christmas present to donate to charity.

-Let them research and decide where a financial contribution goes.

-Encourage them to sort out old clothes and bring them to Goodwill or the Salvation Army.

With the right attitude and approach, we can hopefully all raise children that are equally good savers, spenders, and givers. By letting them make some decisions in these regards, they can further gain greater responsibility in all facets of life as they move forward.

The Allowance® Game for ages 5-8 the easiest way to teach kids about money & it’s fun!

See Also: