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  • Jill Devine

Tips on teaching kiddos the importance of saving money

Photo by Damir Spanic on Unsplash

Both of our girls have piggy banks. They're still a little young to understand the money inside the piggy bank will be split into three categories: donate, save, and spend, but we try and talk about it whenever they put change into the piggy bank. I think it's super important to start having the conversation now about the importance of saving money, but also spending money wisely. In addition, it's equally as important to talk to them about donating their time, money, and/or gifts.

Christmas is right around the corner and in my opinion, a piggy bank is the perfect gift for a child. Maybe put some money in the card to accompany the piggy bank. Here are a few options I found on Amazon:

Photo by Amazon

Pearhead Ceramic Pink Piggy Bank, Makes a Perfect Unique Gift, Nursery Décor, Keepsake, or Savings Piggy Bank for Kids, Pink

Photo by Amazon

Child to Cherish Ceramic Piggy Bank, Purple

FAB Starpoint Swarovski with Crown Princess Porcelain Piggy Bank for Kids (Pink)

Locally, First Community Credit Union does something super cool for kids:

One of our Education Specialists can make arrangements to visit your child’s classroom to offer a FREE, interactive presentation about money, savings, spending and more. Age-appropriate materials can be customized for any grade level. Plus, each participant walks away with a complimentary drawstring backpack that contains gift items and valuable information about accounts at First Community.

I'm not sure how the program has been affected due to the pandemic, but you can call (636) 537-4400 ext.1241 and ask for details.

Here are 10 Tips to Teach Your Child to Save Money from Investopedia:

1. Discuss Wants vs. Needs

2. Let Them Earn Their Own Money

3. Set Savings Goals

4. Provide a Place to Save

5. Have Them Track Spending

6. Offer Savings Incentives

7. Leave Room for Mistakes

8. Act as Their Creditor

9. Talk About Money

10. Set a Good Example

Most people have heard of Dave Ramsey and his best-selling book, The Total Money Makeover: A Proven Plan for Financial Fitness. We own it and have started implementing some of his strategies and we look forward to financial freedom. We have A LOT of work to do, but we're trying. I came across an article Dave wrote with advice for the kiddos. Here are some highlights:

How to Teach Pre-Schoolers and Kindergartners About Money

1. Set an example.

2. Show them that stuff costs money.

How to Teach Elementary Students and Middle Schoolers About Money

1. Show opportunity cost.

2. Avoid impulse buys.

3. Stress the importance of giving.

How to Teach Teenagers About Money

1. Give them the responsibility of a bank account.

2. Get them saving for college.

3. Teach them the danger of credit cards.

4. Get them on a simple budget.

5. Help them figure out how to make money.

To read all of the tips, you can check out his article, 15 Ways to Teach Kids About Money.

One last suggestion I have for you is to open a MOST 529 for your child.

What is a 529 savings plan?
It's a type of investment account you can use for education savings, which is usually sponsored by an individual state.
Where does the name come from?
It comes from Section 529 of the Internal Revenue Code, which specifies the plan's tax advantages.
What makes these little savings vehicles so powerful?
Tax savings. Your earnings grow federally tax-deferred,* qualified withdrawals are tax-free, and some states (like Missouri) have other tax benefits as well.**

Both of our girls have one and it's a great place to put birthday money they may receive. We often tell anyone who wants to buy them a birthday or Christmas gift to divide up what they would normally spend and put half towards their MOST account. It's super easy to contribute to and it's easy to setup an account. You can find all the details on the website.


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