Disclosure: This blog post was written for The Momiverse, pursuant to their engagement by brightpeak financial. All views expressed are entirely my own, and were not influenced or directed by either the Momiverse or brightpeak financial.
In our house saving money is a family affair. One of the main goals of my own personal financial education and the information I share on the blog is to not only empower you to make savvy personal finance decisions but to help us raise a generation of financially smart kids. With a country that is deep in debt, young adults struggling with student loan debt, and many families struggling to eek out a living it’s imperative that we learn and share these lessons now.
One of the simplest ways we’ve used to teach saving to our kids is by creating family saving goals. These could be as simple as saving up for a trip to the movies (yes, it’s that expensive) to saving up for a once in a lifetime vacation.
We’ve found that the best system works when everyone is involved, and we have a centrally located savings point. Physical savings (coins and cash) seem to work the best for kids of all ages. Below you’ll find some advice geared to younger kids and tweens and teens.
For younger kids (under age 8):
Create short-term individual and family goals. Goals setting is key. Start with some simple goals your child has such as saving up to buy gifts for family members and friends over the holidays or even purchasing a toy they’d like to have. Building on that you can create a list of family goals. This could be a list on paper or have everyone write their family goal ideas on strips of paper. Talk about the costs of the goals realistically, and discuss the differences between your family goals and their individual goals. As much as we all might enjoy building a LEGO set I’m pretty sure that fits an individual goal better.
Create a family savings jar. This can be an actual jar, a large water bottle (5 gallons), or a giant piggy bank. Use whatever works for your family. Keep it in a central location. Encourage kids to save a portion of their allowance or earnings in the family savings jar.
Check on your goals each month. Tracking progress is an important part of smart savings. Consider a chart that tracks your family goals.
For older kids (8 and up):
Craft long-term individual and family goals. If your kids have grown up with family goals, crafting longer term goals shouldn’t be an issue. Have a family ‘meeting’ and discuss long-term family plans such as moving to a new home, going on a month-long vacation, or making sure your kids have a healthy college fund in place. Individual goals may be tailored to your child’s interests. They might be saving up for a semester abroad, a school trip overseas, or perhaps expensive sports equipment. This will lead to some interesting discussions about priorities and wants vs. needs.
Be honest about your budget. Older kids need to understand a realistic view of how budgeting and expenses operate. Show them with your own budget and income. While some parents shy away from this idea it is key to becoming financially savvy.
Model good behavior. Showing your kids is more valuable than simply talking about money matters. For instance encouraging kids to donate or tithe is a great way to teach them to give back, but be sure to show them as well. Often it’s easy to pay bills, make donations, etc. without your kids around, but allowing them in on the action helps them understand how important it is to your family.
For additional ideas on money management and teaching kids money management head over to the newly redesigned brightpeak financial website. With three main categories: Live, Work, Learn-you’re bound to find helpful content like Why to start Christmas shopping now, How to Ask for a Raise, and How to Use Credit Wisely.
What is brightpeak financial?
brightpeak financial is a faith-based not-for-profit organization created specifically to serve young Christian families. They are a new division of Thrivent Financial, a faith-based, not-for-profit Fortune 500 company founded more than a century ago. brightpeak financial believes that stronger families create stronger communities, and success means both are better prepared to handle uncertain times.
Learn and Follow brightpeak financial:
brightpeak financial website
Twitter
Facebook
LinkedIn
Pinterest
Kelly
Disclosure: This is a sponsored post, all opinions are my own.
To learn more about the resources available from brightpeak financial, visit brightpeakfinancial.com or find them on Twitter or Facebook.
Kelly
Disclosure: This is a sponsored post, all opinions are my own.
[…] if your kids are on the younger side, or haven’t been exposed to savings goals, then go ahead and save it in a centrally-located, see-through container so that they can keep their eyes on its growth. Now might be the perfect […]