One of the more interesting saving schemes for kids I found is BPI Jumpstart Savings. It’s an ATM savings account for older kids who are already receiving allowances.
Parents, when do you start teaching your kids the value of money? At what age do you begin giving them allowances? When they want to buy something high-value, do you buy it for them or let them save up?
Among many important values, I think being money-wise is something parents should teach their kids early.
With our kids returning to school in a few days, allowances and budgeting are some of the concerns we and our kids will be dealing with. Here are some tips on how to help your kids learn the value of saving.
1. Teach them the concept of saving early on with piggy banks. What my kids and I do is start a piggy bank account at the beginning of the year and use the savings for something they want for themselves during Christmas. This way, they will learn in a tangible way that saving money has its rewards.
2. Give older children allowances. My two daughters started receiving a weekly allowance when they got to Grade 3. Hub and I decided to give the allowance weekly instead of daily to teach them how to budget. If they used up the allowance before the week was over, sorry – they’ll have to do better next time.
I also encourage my kids to set aside a small amount from their allowances – a few coins each day will do. Last Christmas, Patch told me she wanted to give gifts to her classmates. I told her I only had little budget for that, and if she wanted to spend more, she will have to save for it. And so she saved from her allowances.
An allowance gives kids some feeling of empowerment, as well as a sense of responsibility. As they master their spending and budgeting skills, they become more confident.
3. Live by example. The kids must see how you yourselves as their parents are saving and budgeting. We can’t tell them “no, that’s too expensive” when they see us splurging on unnecessary luxuries, can we? When I buy groceries, I compare prices and stick to the ones I know are cheaper but with comparable quality. My kids have seen me whip out the calculator in the supermarket and compare, say, toilet paper prices per roll. LOL. I think my kids have absorbed the price-conscious attitude. Continue reading BPI Jumpstart Savings account for kids