Teaching Kids How to Save Money

Corey Blake from New Horizons Credit Union joined us on Studio10 with some tips on how to teach your kids to save money.

Here are some of the questions and answers discussed during the show:

How do you educate children on the meaning of money?
First, teach them how to count money. Once your child has learned to count money your child has learned to count money, then teach them how to manage money.  A fun way to introduce them to money, and if they are old enough, is to help them set up a lemonade stand. Help them learn about profits and investing those profits back into their business.

How do you explain the value of saving money?
Teach them to understand the importance of saving money and show them how it can impact their life.  Help them open a savings account. Many financial institutions offer savings clubs for kids that offer a fun way to save.

What about giving an allowance?
Allowances are a great way of teach kids the importance of working hard for their money.  Give allowances in denominations and encourage them to save some. For example: with a $10 allowance, give them a $5 bill and 5 $1 bills… have them deposit the $5 and they can spend the $1s.

Is there anything else you should teach them?
Yes, the entrepreneurial spirit and how to use money to make money. This is one of the greatest gifts you can give your children.

New Horizons Credit Union
www.newhcu.org