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Tips to teach young children how to save

Published on Monday, November 2, 2015

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Children as young as three years old can grasp financial concepts like saving and spending.
 

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Children as young as three years old can grasp financial concepts like saving and spending.

 

By Citizens Building & Loan

As parents, we really can’t start too early to teach our children about money.

According to an article in Forbes by contributor Laura Shin, “The 5 Most Important Money Lessons to Teach Your Kids”, children as young as three years old can grasp financial concepts like saving and spending.

Shin’s article is a summary of financial insight by Beth Kobliner, author of the New York Times bestseller “Get A Financial Life”, and a member of the President’s Advisory Council on Financial Capability who spearheaded the creation of “Money As You Grow”, which offers age-appropriate money lessons for children.

According to Kobliner, “Parents are the number one influence on their children’s financial behaviors, so it’s up to us to raise a generation of mindful consumers, investors, savers, and givers.”

Here’s a saving activity she suggests that you can do with children age 3 to 10 years to encourage mindful saving.  Label three jars:  “Savings,” “Spending” or “Sharing.” Every time your child receives money for chores or an allowance or a birthday, divide it equally among the jars.

The “Spending” jar can be used to make small purchases, like candy or stickers. Money in the “Sharing jar” can be given to a charity or to a friend in need.  The “Savings” jar should be used for more expensive items.

Have your child set a goal, such as to buy a toy – but not something so expensive that they will lose interest or get frustrated.

When your child adds money to the “Savings” jar, help him/her count it, discuss how much is needed to reach their goal and when it will be reached. This helps you teach the importance of waiting and being patient and that saving is a goal.

CBL also believes in the importance of teaching children how to save for their futures.  Learn more about CBL’s Kids Count Savings Accounts here.

• Citizens Building & Loan, at 229 Trade Street, has been serving the mortgage lending and savings needs of Greer and the surrounding communities since 1907.

 

 

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