It is never too early to start saving and learning more about money. With the right financial foundation, adults can navigate the process of buying a home, getting a car loan, or even weathering an economic recession. It all begins in childhood; the relationship kids develop with money influences their whole lives. Here are some ways you can practice the skill of saving money with your preschooler to set them up for success.
Start With a Piggy Bank
Preschoolers are eager to have things for themselves and establish some independence from their parents. It will empower and excite your child to save their own money and have the ability to buy their own toys or treats. Get your youngster their very own piggy bank and explain to them that its purpose is for saving their money. Any monetary gift they receive, small allowances or rewards you give, and even those pennies they find in the grocery store parking lot will now have a purpose.
Help Them Earn
For your preschooler to understand the flow of money that their parents use every day to purchase things, they first need to understand where it comes from. Most preschoolers do not know how their parents acquire money and do not understand the word “earn.” Once your child has a piggy bank and knows they should save, provide them opportunities to earn money. Ask them if they have any ideas and encourage an entrepreneurial approach. Your preschooler should be old enough to even host their own lemonade stand with your help.
Saving for Long-Term Goals
If your preschooler desires something expensive, instead of encouraging them to put it on their birthday or holiday wish list, encourage them to save for it. Making a plan with your preschooler to earn the money, save the money, and add it up toward a large purchase will teach them a variety of financial skills. The lesson of delayed gratification is important to learn in today’s society and can be achieved by saving with your preschooler for long-term goals.
Even though your child still seems young, they are old enough to learn about saving money. Begin talking with your preschooler about money and build a financial foundation that they can base decisions from the rest of their lives.
Mid-Minnesota Federal Credit Union is in the business of helping you. To start you kids off on the right financial foot, visit our website to learn more.